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US Sanctions Pose Difficulties For Japan’s LNG Imports from Russia Artic 2 LNG

LNG

US sanctions on the use of Russian transshipment terminals for LNG are creating logistical difficulties for Japan’s planned deliveries from the facilities, Daisuke Harada, director of energy research at Japan Organization for Metals and Energy Security, or JOGMEC, said.

  • Russia plans to use new terminals in Kamchatka and Murmansk to reduce the cost of shipping LNG from projects including Arctic LNG 2, in which a consortium of JOGMEC and Mitsui holds a 10% stake.
  • Alternatives include using icebreakers for direct journeys from Russia to Japan, although that route isn’t the most efficient, Harada said.
  • The US Treasury Department issues the latest rounds of sanctions on Russian companies and citizens in mid-September, which included the Novatek LNG transshipment terminals in Murmansk and Kamchatka, the Department said.
  • Russia’s share in Japan’s LNG supply stood at 9.5% in 2022 and could as to as much as 13% with the start of the new LNG facility, Harada added.

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