Related Articles
Forward article link
Share PDF with colleagues

Japanese players eye Gazprom tie-up

A consortium of Japanese energy firms wants to build a large LNG production facility near Vladivostok with Russia’s Gazprom, the companies said today, with the east Asian country attempting to secure long-term energy supplies following the earthquake in March

A consortium of Japanese energy firms wants to build a large LNG production facility near Vladivostok with Russia’s Gazprom, the companies said today, with the east Asian country attempting to secure long-term energy supplies following the earthquake in March.

The project in eastern Russia could produce up to 10m tonnes a year of LNG and may be operational in 2017. Japan wants to import more LNG in the short-term after shutting in some nuclear-power plant capacity following the devastating earthquake and tsunami, but may also need more gas as it ponders less reliance on nuclear power in the future.

The Japan Far East Gas consortium – comprising Itochu (37.5%), Japan Petroleum Exploration (32.5%), Marubeni (20%), and Inpex(10%) – is expected to start a feasibility study for the facility near Vladivostok. The study will be completed by the end of the year.

“The feasibility study will make an important contribution in building up natural gas deliveries from Russia to Asia-Pacific countries by Gazprom in future as well as in reliable energy supply to Japan,” Alexander Ananenkov, deputy chairman of Gazprom, said.

Russia is also developing another 15m t/y LNG project on the Yamal peninsula and the 7.5m t/y Shtokman LNG project in the Barents Sea, although the final investment decision about the latter has been delayed again from April to December 2011.

Shell is also trying to expand Russia’s existing 9.6m t/y Sakhalin-2 LNG production plant by 50%.

Although Russia is the largest gas exporter in the world, it is a relatively small LNG exporter. But the country could be tempted to diversify into different markets as Qatari LNG takes chunks out of Gazprom’s European gas market share

 

Also in this section
Ambiguities dull lustre of carbon-neutral LNG
22 September 2020
The complexity and cost of pricing carbon emissions from LNG’s full lifecycle will likely deter adoption—so a narrower approach may work better
JKM globalises the gas market
21 September 2020
In Asia, an increasingly liberalised LNG market has enabled the region to mitigate a lack of interconnected pipeline infrastructure
Uzbekistan plans giant leap in refining
21 September 2020
The country is looking to bring its refining industry up to modern standards, but it needs to resolve the problem of oil supply