DEST: NOJPBSM

Japan‌ Can Replace Sakhalin 2 ⁢LNG, Executives Say

Tokyo, November 29, 2023 ⁤ – Japan’s largest power generator, JERA, and other industry executives assert⁢ the​ nation can secure choice⁢ liquefied natural gas (LNG) supplies‌ to replace‍ volumes previously sourced from‌ the Sakhalin 2 project, even ‌as the ​fallout from Russia’s⁤ invasion ⁣of ‌Ukraine continues to⁤ reshape global energy ⁢markets. The statements‌ signal increased confidence in Japan’s ability to diversify ⁣its energy portfolio and reduce reliance ​on Russian ⁤fuel.

The reassurances come after several Japanese companies, including JERA and Mitsubishi, ⁣exited the Sakhalin 2 LNG project following Moscow’s demand for payment ‍in rubles.While⁣ the loss ⁣of Sakhalin 2‍ LNG initially raised concerns⁢ about ‌Japan’s energy security, ‍executives ⁤now believe a ‍combination of⁤ increased⁢ LNG imports from other ⁤sources – including the ⁤United ⁤States,⁣ Australia,⁢ and ‌Qatar – and domestic energy production can⁤ fill ⁣the gap.⁤ The shift is critical for Japan, ⁢which relies heavily on ⁤LNG imports to⁤ meet ‌its ​energy needs, especially as winter demand surges.

JERA⁢ President Yukio Kani, speaking at a recent energy ⁣conference, stated ‍the company has ⁢already secured alternative LNG supplies and ‌does not foresee significant disruptions.​ “We have diversified our procurement sources and are⁣ confident in our ability to maintain⁢ a ⁤stable supply⁣ of‌ LNG,” Kani ⁣said. He added that JERA is actively exploring long-term⁣ contracts with ⁤suppliers in various regions to further bolster⁤ its energy security.

Other Japanese utilities echoed ​JERA’s⁤ sentiment.Executives from ⁤Kansai Electric Power and Chubu⁣ Electric⁢ Power also indicated they have successfully secured alternative LNG sources and⁣ are‍ prepared for the upcoming winter season. According‌ to data from the Ministry of ​Economy, trade and Industry (METI), Japan’s LNG imports​ from Russia⁢ fell to approximately 9% in October, down from 9.7% ⁣in the previous year.⁤

The ability to replace Sakhalin 2 LNG ‌is a testament to Japan’s proactive efforts to ‌diversify its energy supply‌ and strengthen its ‌energy security in the face of geopolitical uncertainty. ‍ METI officials have emphasized the importance of⁤ continued collaboration with international partners⁤ to‌ ensure a stable and affordable energy supply for the⁣ nation. ​ ​The​ long-term implications ⁣of this ⁢shift include perhaps higher LNG prices and ⁤a continued push for renewable energy sources within Japan.