Bloomberg learned that Japan allows the replacement of the LNG supplier

Bloomberg: Russia's decision on Sakhalin-2 will lead to the fight between Japan and Europe for gasThe second largest buyer of liquefied natural gas (LNG)— Japan— is considering replacing Russian gas supplies after Russian President Vladimir Putin decided on special economic measures for Sakhalin-2, Bloomberg writes, citing Japanese Trade Minister Koichi Hagiuda.

According to him , Tokyo may start buying more on the spot market or from other countries. Japan has already asked the US and Australian authorities to increase supplies in order to reduce dependence on Russia, Hagiuda said.

“If the Sakhalin project, which supplied Japan with [gas] at competitive prices, is in such a limbo, spot prices are at risk of further rising, which may even provoke a panic in the market,” — Hiroshi Hashimoto, an analyst at the Institute of Energy Economics in Japan, warned.

According to the agency, Moscow's decision to redistribute ownership of the Sakhalin-2 gas project may push Japan to compete with Europe for alternative sources of supply.

According to BloombergNEF, the global LNG market is likely to remain tight until 2026.

On June 30, Putin signed a decree according to which Sakhalin Energy Investment Company Ltd. shareholders were Japanese Mitsui & Co (12.5%) and Mitsubishi (10%) becomes the property of a company to be created by the Russian government.

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This decision was made in connection with “unfriendly and contrary to international law” the actions of the United States and “joined” states and organizations aimed at imposing sanctions against Russia.

Seiji Kihara, Deputy General Secretary of the Cabinet of Ministers of Japan, said that Tokyo is studying Putin's decree and cannot provide answers to all questions under this decision.

In April, the Japanese government announced that it would not withdraw from the project, since in this case another country could take its place. NHK indicated that supplies from Sakhalin-2 account for 9% of Japan's LNG imports. Prior to this, Japanese Prime Minister Fumio Kishida emphasized that the Sakhalin-2 project is extremely important for the country's energy security, as it contributes to long-term, inexpensive and stable supplies.

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