Japan Responds to Fresh Sanctions on Arctic LNG 2

Tuesday, September 19, 2023

Japan will ensure stable and steady energy supply to the country even after the U.S. imposed fresh sanctions related to Russia's Arctic LNG 2 project, Japan's Chief Cabinet Secretary Hirokazu Matsuno said on Tuesday.

The Arctic LNG 2 project is operated by Russia's Novatek while Japanese trading company Mitsui & Co and state-owned Japan Organization for Metals and Energy Security (JOGMEC) hold a combined 10% stake.

Mitsui and JOGMEC are set to receive a combined 2 million metric tons of LNG per year from the project.

The latest sanctions are part of several economic measures the U.S., Europe and their allies have taken against Russia in response to its invasion of Ukraine in February 2022. They include a soft price cap on Russian oil and fuel exports and restrictions on Russian access to the global banking system.

"In cooperation with the G7 including the United States, we will make a comprehensive judgment and take appropriate measures to make sure the stable supply of energy to Japan," Hirokazu told a news conference.

He also told reporters that the government was gathering information about the sanctions and its possible impact to Japan.

Resource-poor Japan imports nearly all of its oil and natural gas.

The sanctions do not apply to the project itself nor to its shareholders, but a Japan government source said they could complicate how Mitsui and JOGMEC provide support for the project and could also delay production from Arctic LNG 2.

Mitsui said on Saturday it is committed to complying with the sanctions. JOGMEC has not replied to a Reuters request for a comment.

Novatek plans to start the first production train at Arctic LNG 2 towards the end of the year, which may reach full output by the first quarter of 2024. The project is designed to run three production lines with an annual production capacity of 19.8 million tons.

The U.S. sanctions apply to a number of Russian companies and one UAE firm providing architecture, construction and engineering services for the project, and to a Russian ship construction firm that will operate two LNG floating storage units for Arctic LNG transhipments via the Northern Sea Route and to two storage vessels set to operate on the route.

(Reuters - Reporting by Mariko Katsumura and Yuka Obayashi; Editing by Jacqueline Wong and Christian Schmollinger)

Categories: LNG Cargo Sanctions Asia

Related Stories

Valaris Secures $600M in New Contracts as Backlog Rises to $4.8B

Aramco Third Quarter Profit Up 35% Despite War Disruptions

Eni, Petronas JV Brings Indonesian Offshore Gas Field Online

Big Oil Pockets Near-Record Profits but Spending Restraint Signals Long-Term Doubts

Inpex Moves $21B Indonesian LNG Project Closer to Investment Decision

PTTEP, Eni Launch Joint Venture for ADNOC-Operated Ghasha Offshore Project

LNG Flows Through Hormuz Hit Seven-Month High

Qatar-Linked LNG Tankers Resume Hormuz Transits

Inpex Takes Additional Stake in Ichthys LNG

XRG, ADNOC and SEFE Deepen Gas Ties in Europe

Current News

TotalEnergies Inks 15-Year LNG Supply Deal with China's Jiangsu Guoxin

Baker Hughes Sets Up Global Network to Bolster Mature Oil and Gas Fields Production

Valaris Secures $600M in New Contracts as Backlog Rises to $4.8B

Production Restart at Australian Offshore Fields Boosts Jadestone's Oil Output

Aramco Targets Hormuz Bypass with East-West Pipeline Expansion

ADES Lands New Offshore Drilling Rig Deals in Angola and Indonesia

Shell to Exit Australia's North West Shelf Project in $1.45B Deal with XRG

Aramco Third Quarter Profit Up 35% Despite War Disruptions

Eni, Petronas JV Brings Indonesian Offshore Gas Field Online

CNOOC Set to Restore Production at Major South China Sea Gas Field

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com