INTERVIEW: Japan Gas Leader Says Hard to Give Up Russian LNG

Tokyo, Jan. 29 (Jiji Press)–It is difficult for Japan to give up Russian liquefied natural gas, despite stepped-up sanctions by the United States and Europe, Japan Gas Association leader Takashi Uchida has said. Securing alternative suppliers will not be easy since Russian LNG has an “economic advantage,” Uchida, also chairman of Tokyo Gas Co., said in a recent interview, emphasizing the importance of continuing procurement of it. About 10 pct of Japan’s LNG imports come from Russia, mostly from the Sakhalin-2 oil and gas project in the country’s Far East. The United States urged Japan to halt energy imports from Russia, including LNG from the Sakhalin-2 project, in October last year. Washington last December announced a six-month extension of an exemption allowing Japan to continue importing LNG from the Russian project. But Uchida said that the U.S. sanctions still cause concern, adding that it is necessary to make sure in cooperation with the government that Japanese companies continue to procure LNG from the Sakhalin-2 project. On future possibilities of buying LNG from an Alaska LNG project, which U.S. President Donald Trump’s administration is eager to realize, Uchida said it depends on costs. He also stated that the problems of costs and production volume must be resolved to popularize synthetic methane, made from water and carbon dioxide, which is expected to play a major role in the industry’s decarbonization efforts. END [Copyright The Jiji Press, Ltd.]