Japan cautioned on Russian gas delivery| MENAFN.COM

Friday, 12 August 2022 05:42 GMT

Japan cautioned on Russian gas delivery


(MENAFN) Japan will have to carry on importing Russian liquefied natural gas (LNG) because of high energy costs and partial predictions for rebooting nuclear plants, according to the Financial Times, quoting Japanese transportation giant Mitsui OSK Lines (MOL).

The firm’s boss, Takeshi Hashimoto, informed the business daily that Japan does not have viable alternatives to Russian LNG, which it purchases relatively cheaply under lasting contracts, to protect its baseload power.

Hashimoto noted “We cannot use many nuclear power stations; therefore, the supply and demand balance of the power industry is quite tight,” adding “Nowadays, the spot market of both LNG and coal is quite expensive. That is one of the reasons why Japan is so reluctant to stop the LNG imports from Russia.”

As stated by CEO, MOL will keep servicing Japanese gas purchasers like Tokyo Gas and Jera with imports from Russia. “Since Japanese buyers require Sakhalin-2 LNG, definitely we will try our best to continue our normal services regardless of Russian national policy.”

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