Japan Becomes Top Buyer of LNG from Russia's Sakhalin 2
(Reuters) — Japan is currently the biggest importer of liquefied natural gas (LNG) from Russia's Sakhalin 2 plant accounting for 57.5% of its exports, Interfax news agency quoted a company senior manager as saying on Thursday.
Japan has reduced its imports of Russian energy since the start of Russian's military conflict with Ukraine but has kept stakes in several fossil fuel projects in Russia.
China has accounted for 26.3% of Sakhalin 2's LNG supplies followed by South Korea at 16.2%, Interfax quoted the company's chief of marketing unit Leonid Alexandrov as saying. He did not specify a timeframe.
Japan reduced its LNG purchases from Russia by 11% last year to 6.1 million metric tons, though Moscow remained Japan's third biggest supplier with a 9% share behind Australia and Malaysia.
Japanese companies Mitsui and Mitsubishi have 12.5 and 10% stakes in Sakhalin 2 which is led by Russia's Gazprom.
The plant delivers more than 80% of its LNG under long- and medium-term contracts while the rest is sold on the spot market, Interfax reported.
Alexandrov said global LNG demand is likely to slightly exceed supply until 2027, which will underpin LNG prices, it reported.
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