Page 11 - GLNG Week 02 2023

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Japan’s Mitsui OSK to continue

shipping Russian LNG

SHIPPING ONE of Japan’s ‘Big Three’ maritime transporta- portion of the project, losing $1.6bn in the
tion heavyweights, Mitsui O.S.K. Lines (MOL), process.
will continue to carry Russian LNG loads as long The Japanese firms have been unwilling
as possible, albeit by following Japanese govern- to shoulder such losses and have doggedly
ment guidelines in doing so. remained active in the region, following new
As one of the firms importing LNG for Japan administrative and registration criteria put in
from the Sakhalin-1 and Sakhalin-2 projects in place by Moscow.
the Far East of Russia, MOL was, as of August However, following the summer of
2022, a leading contributor in bringing in much 2022 thumbs-up from Moscow on applications
of the 4.3bn tonnes of LNG that Japan imports filed by both firms to be allowed to keep their
each year. original stakes under the name of a new oper-
An estimated 10% of the total currently ator, Japanese investments in the region remain
comes from Russian suppliers, according to sta- active, for now.
tistics, despite calls from around Japan and the Looking forward, though, the MOL president
wider world for Tokyo to limit imports from voiced caution over a predicted inflation-led
Russia in line with US and European Union downturn in business for shipping firms.
member nations. “This year, we may see the impact of infla-
Speaking as part of his annual New Year’s tionary measures in the US and Europe, and a
address to staff and investors, MOL president significant but temporary downturn in the econ-
and CEO Takeshi Hashimoto said: “Disruptions omy; however, we expect a return to a moderate
in supply chains, soaring energy and grain prices, expansionary trend in the not too distant future,
global inflation, and so on – turmoil continues as the Chinese economy normalises and the pace
in a variety of fields. Some companies decided of US interest rate hikes slows. We intend for this
to withdraw from Russia-related business, but year to be one in which we effectively use the cap-
our group will continue to offer stable transport ital we have accumulated over the past two years
services, placing the highest priority on securing to prepare for deteriorating financial results and
the safety of crewmembers, cargo and vessels, as to invest for our future growth,” Hashimoto said
a company that develops a social infrastructure as part of the same New Year message to staff.
business centred on ocean shipping, transport- This future growth will not immediately
ing commodities essential to people’s lives.” include the shipping of LNG, it seems, with
Continuing, “… about strategic importance MOL preparing to reorganise its overseas oper-
of energy supply under current circumstances, ations along the lines of corporate, business and
we will continue our energy transport business, regional organisations. No mention was made
mainly LNG, from Russia as long as we can, and of possible new LNG routes being investigated.
this is also in line with the direction of the Jap- “The group’s policy is to actively pursue
anese government’s policy.” Hashimoto made overseas business development in line with its
clear, however, that the firm will not be bend- regional strategy, and we are also strengthening
ing the law to achieve its goal, even with Japan our non-shipping businesses such as offshore,
still backing investment in Russia’s Sakhalin gas logistics, real estate and cruise ships, in addi-
projects. tion to the traditional ocean shipping business,”
Less than a year ago all indicators pointed Hashimoto concluded leaving analysts and deal-
towards Japan’s leading investors in Sakhalin, ers in the region guessing as to what degree, if
primarily Mitsui and Mitsubishi, possibly los- any, LNG will form part of MOL’s longer-term
ing their stakes after Shell exited its own 27.5% shipping plans.™

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