Japanโ Can Replace Sakhalin 2 โขLNG, Executives Say
Tokyo, November 29, 2023 โค – Japan’s largest power generator, JERA, and other industry executives assertโข theโ nation can secure choiceโข liquefied natural gas (LNG) suppliesโ to replaceโ volumes previously sourced fromโ the Sakhalin 2 project, even โas the โfallout from Russia’sโค invasion โฃof โUkraine continues toโค reshape global energy โขmarkets. The statementsโ signal increased confidence in Japan’s ability to diversify โฃits energy portfolio and reduce reliance โon Russian โคfuel.
The reassurances come after several Japanese companies, including JERA and Mitsubishi, โฃexited the Sakhalin 2 LNG project following Moscow’s demand for payment โin rubles.Whileโฃ the loss โฃof Sakhalin 2โ LNG initially raised concernsโข about โJapan’s energy security, โexecutives โคnow believe a โcombination ofโค increasedโข LNG imports from other โคsources – including the โคUnited โคStates,โฃ Australia,โข and โQatar – and domestic energy production canโค fill โฃthe gap.โค The shift is critical for Japan, โขwhich relies heavily on โคLNG imports toโค meet โits โenergy needs, especially as winter demand surges.
JERAโข President Yukio Kani, speaking at a recent energy โฃconference, stated โthe company has โขalready secured alternative LNG supplies and โdoes not foresee significant disruptions.โ “We have diversified our procurement sources and areโฃ confident in our ability to maintainโข a โคstable supplyโฃ ofโ LNG,” Kani โฃsaid. He added that JERA is actively exploring long-termโฃ contracts with โคsuppliers in various regions to further bolsterโค its energy security.
Other Japanese utilities echoed โJERA’sโค sentiment.Executives from โคKansai Electric Power and Chubuโฃ Electricโข Power also indicated they have successfully secured alternative LNG sources andโฃ areโ prepared for the upcoming winter season. Accordingโ to data from the Ministry of โEconomy, trade and Industry (METI), Japan’s LNG importsโ from Russiaโข fell to approximately 9% in October, down from 9.7% โฃin the previous year.โค
The ability to replace Sakhalin 2 LNG โis a testament to Japan’s proactive efforts to โdiversify its energy supplyโ and strengthen its โenergy security in the face of geopolitical uncertainty. โ METI officials have emphasized the importance ofโค continued collaboration with international partnersโค toโ ensure a stable and affordable energy supply for theโฃ nation. โ โTheโ long-term implications โฃof this โขshift include perhaps higher LNG prices and โคa continued push for renewable energy sources within Japan.
