Japan's LNG Pivot: Navigating Energy Security Amid Global Pressure
Japanese utilities, reliant on Russia's Sakhalin-2 for LNG, explore alternative sources amid U.S. pressure to stop imports from Russia. JERA, Tohoku, and Kyushu Electric are exploring diversification options to shield Japan's energy security, with consideration towards U.S. energy partnerships including Alaska's LNG project.
Japanese utilities JERA, Tohoku Electric Power, and Kyushu Electric Power are exploring alternative liquefied natural gas (LNG) supply sources. This comes as the U.S. applies pressure to reduce energy trade with Russia due to its ongoing conflict in Ukraine.
JERA, a significant player in the LNG market, has plans to adapt if supplies from Russia's Sakhalin-2 cease, according to Naohiro Maekawa, an executive officer at the company. Tohoku Electric is diversifying its supply sources, as senior executive Takayoshi Enomoto mentioned, anticipating a potential halt in Russian imports.
Kyushu Electric Power is considering forward deliveries and market procurement to handle any supply disruptions, as per Yoshikazu Miyazono from its Tokyo branch. Additionally, U.S. Treasury Secretary Scott Bessent suggests Japan may eventually transition to the Alaska LNG project. Japanese companies, however, remain cautious about solidifying deals with the U.S. project.
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