Page 7 - FSUOGM Week 39 2022

FSUOGM PIPELINES & TRANSPORT FSUOGM

Toho Gas next Japanese buyer to sign

new contract with Sakhalin-2

JAPAN TOHO Gas has become the latest Japanese signed supply agreements with the new Sakha-
gas buyer to renew its contract for LNG from lin-2 operator, including Jera, Kyushu Electric
Toho Gas will continue the Sakhalin-2 project in Russia, local media Power, Hiroshima Gas and Tokyo Gas. Like-
to procure 500,000 tpy reported on September 20. wise, the contractual terms including volumes
of LNG until 2033. According to the Kyodo media newspaper, are reported to be the same.
Toho Gas will continue to procure 500,000 Japan’s government exerted pressure on Mit-
tonnes per year (tpy) of LNG until 2033, having sui and Mitsubishi to maintain their positions
agreed the new contract with Sakhalin-2’s new at Sakhalin-2, because of concerns about the
state-established operator. The contractual terms potential loss of gas supply from the project. Like
remain the same. many other countries, Japan is in the grip of an
A state-backed entity assumed control of the energy crisis, and it is the biggest buyer of gas
Sakhalin LNG project in mid-August, replacing from the Russian terminal, given its close prox-
the international consortium Sakhalin Energy imity. The government had voiced concerns that
Investment as operator. The Russian govern- if Japanese companies left, gas from the facility
ment had earlier accused the foreign partners would be sent to Japan’s geopolitical rival China
at the project – Shell and Japan’s Mitsui and instead.
Mitsubishi – of violating their shareholder In the wake of the 2011 Fukushima nuclear
obligations. disaster, Japan began turning off its nuclear
Russia’s Gazprom automatically retained the power plants, (NPPs) and replacing much of
same majority shareholding in Sakhalin-2’s new that baseload energy supply with gas-fired gen-
operator as it did in its previous one. Mitsui and eration. But the global gas crisis has exposed the
Mitsubishi have agreed to take stakes in the new country’s overreliance to imported LNG. The
entity, but Shell is yet to announce its decision. government said in August it would restart some
The Anglo-Dutch major has vowed to withdraw idle nuclear reactors, and potentially increase
from Russia in light of its invasion of Ukraine. the lifespans of ones still in operation and build
Other Japanese energy companies have also new-generation units. ™

Week 39 30•September•2022 www. NEWSBASE .com P7