Ifx: Japan is the top buyer of LNG from Sakhalin 2 in Russia

Interfax reported that a senior manager of the Sakhalin 2 plant in Russia said on Thursday that Japan was currently the largest importer of LNG from Russia, accounting for 57.5% its exports.

Since the beginning of Russia's conflict with Ukraine, Japan has decreased its imports from Russia but kept stakes on several fossil fuels projects in Russia.

Interfax reported that the chief of marketing for Sakhalin 2 company, Leonid Alexandrov, said China accounted 26.3% of LNG supplied by Sakhalin 2, followed by South Korea with 16.2%. He did not give a specific timeframe.

Japan cut its LNG purchases by 11 percent last year, to 6.1 millions metric tons. However, Moscow remains Japan's third largest supplier with a 9 percent share behind Australia and Malaysia.

Sakhalin 2, a Russian project led by Gazprom, is a joint venture between Japanese Mitsui & Mitsubishi and owns 12.5 % and 10% respectively.

Interfax reported that the plant sells more than 80% its LNG on a spot market and the remainder is delivered under long-term or medium-term contracts.

It reported that Alexandrov stated that global LNG demand will likely slightly exceed supply by 2027. This will drive LNG prices. (Reporting and editing by Jason Neely; Vladimir Soldatkin)

(source: Reuters)