Japan's Ministry of Economy, Trade and Industry: The Sakhalin-2 Liquefied Natural Gas Project in Russia Remains Important for Japan

Japanese Minister of Economy, Trade and Industry Takehiko Fujii stated at a press conference that although Japan has reduced its reliance on Russian energy since Russia launched its special military operation in Ukraine, the "Sakhalin-2" project still plays an "extremely important role" in ensuring Japan's energy security.

This statement by the Japanese minister came in response to a journalist's question regarding previous comments by U.S. Treasury Secretary Janet Yellen, who expressed hope that Japan would stop importing energy from Russia.

He said, "Japan is continuously reducing its reliance on Russian energy. The liquefied natural gas supply from the 'Sakhalin-2' project accounts for about 10% of Japan's total liquefied natural gas imports, which is approximately 3% of Japan's total power generation. We believe that this project plays an extremely important role in Japan's energy security."

Regarding specific steps, Fujii said that Japan will closely coordinate with the Group of Seven (G7) and the international community, and take corresponding measures according to its national interests.

According to statistics from Japan's Ministry of Economy, Trade and Industry, during the fiscal year 2024 (April 1, 2024, to March 31, 2025), liquefied natural gas exported by Russia accounted for 63.9% of Japan's total energy imports from Russia. However, due to the price cap set by the G7, Japan did not purchase Russian oil except for goods related to the liquefied natural gas of the "Sakhalin-2" project.

The "Sakhalin-2" project is a joint venture between Russia and Japan. Gazprom holds 77.5% of the shares, while the Mitsui Group and Mitsubishi Group hold 12.5% and 10% respectively.

In 2022, according to a presidential decree from Russia, a newly established company named Sakhalin Energy Limited Liability Company was designated as the operator of the "Sakhalin-2" project. Subsequently, Royal Dutch Shell announced its withdrawal from the project and refused to invest in the new company.

Original: www.toutiao.com/article/1846657600049162/

Statement: This article represents the views of the author himself.