Japan To Mitigate Impact of U.S. Sanctions on Russia's Arctic LNG 2 Project in Bid to Secure Energy Supply

U.S. sanctions expected to impact Arctic LNG 2 project, where Japan holds a 10% stake, as country aims for security of liquefied natural gas supply amidst transition to carbon neutrality by 2050.

• Japan, the world's second-largest liquefied natural gas (LNG) buyer, holds a 10% stake in the Arctic LNG 2 project in Russia, targeted by recent U.S. sanctions over the war in Ukraine.
• Japanese Industry Minister Yasutoshi Nishimura asserts that ensuring the stability of LNG supplies is crucial and affirms the nation's commitment to mitigating the sanctions’ impact on its energy supply.
• Once operational in the second half of the decade, the Arctic LNG 2 project will provide Japan with 2 million metric tons of LNG per year, accounting for approximately 3% of total imports.
• Japanese trading company Mitsui & Co and state-owned Japan Organization for Metals and Energy Security (JOGMEC) hold the combined 10% stake in the project. Mitsui's exposure to the Arctic LNG 2, including investments, loans and guarantees, was 249 billion yen ($1.7 billion).
• The Japanese government is prepared to work with the Group of Seven (G7) countries to make comprehensive judgments and appropriate responses to ensure its stable energy supply in light of the U.S. sanctions.

3 Articles

The Japan Times Reuters CNA