Page 9 - GLNG Week 36 2022
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GLNG ASIA GLNG
Japan’s government mulls
buying LNG for its companies
JAPAN JAPAN’S government is ready to take the Despite joining its Western allies in con-
unprecedented step of purchasing LNG itself if demning Moscow’s invasion of Ukraine and
the country’s energy companies cannot afford to supporting retaliatory sanctions against Rus-
do so, Japanese media reported last week. sia, Japan is a major importer of Russian LNG
Japan is heavily reliant on imported energy and has ruled out curbing that supply, for lack
supplies, lacking any oil and gas resources of its of alternatives. This month, Japanese gas firms
own. It has also expanded the role of imported JERA and Tokyo Gas sealed supply deals with
LNG in its power mix in recent years to replace the new state-backed operator of Russia’s Sakha-
nuclear power that it has been phasing out in lin-2 LNG plant, where most of Japan’s Russian
the wake of the 2011 Fukushima disaster. This gas comes from.
has made the country acutely vulnerable to the Russia’s government transferred the opera-
soaring cost of LNG on global markets, and has torship of Sakhalin-2 to the new entity, Sakhal-
led its officials to even consider restoring nuclear inskaya Energia from the international Sakhalin
power plants (NPPs) to ease its energy crisis. Energy consortium, after accusing its foreign
According to Japanese media, the govern- shareholders of violating their project obliga-
ment intends to establish a framework for tions. Both Japan’s Mitsui and Mitsubishi have
state-owned Japan Oil, Gas and Metals National agreed to take the same equity positions in the
Corp. (JOGMEC) to buy LNG on behalf of other new entity as they did in the last one, on the
Japanese companies. Tokyo is also considering advice of Japan’s government. Shell, the other
imposing mandatory cuts in gas consumption foreign partner in the project, is yet to take this
by large energy users as a last resort. But for the step, having vowed to leave Russia in response to
time being, it is only asking households and busi- the war in Ukraine.
nesses to conserve energy.
Week 36 09•September•2022 www. NEWSBASE .com P9
