Sakhalin Governor Calls on Japan to Back Second LNG Project in Sakhalin

Sakhalin Will continue to strengthen its position as a leading player in the LNG market in the Asia – Pacific Region. This was announced by Governor Alexander Horoshavin in the course of meetings with the heads of major Japanese companies “Mitsui”, “Tokyo Gas” and “Tokyo Electric” at the launch of “Sakhalin – territory development” in Tokyo.

The head of the region noted that the company “Mitsui” has played an important role in the implementation of a major offshore project “Sakhalin-2”, creating the island’s first Russian LNG plant. “Tokyo Gas” and “Tokyo Electric” later became the first major buyers of Sakhalin gas.

“The Government of the Russian Federation intends to significantly increase the country’s share in world production of LNG. We expect that the Sakhalin region will be able to increase its presence in the gas market in Japan and Asia-Pacific. We hope that our Japanese partners, which include the company “Mitsui”, “Tokyo Gas” and “Tokyo Electric”, also meet interest and support in this matter. When I talk about increasing our presence in the gas market of the rising sun and the Asia-Pacific region, I mean not only the realization of the concept of expanding the existing LNG plant on Sakhalin Island, but the idea of building another LNG plant in the framework of the project “Sakhalin-1,” – the governor said during the meeting.

He added that he finds it necessary to combine the efforts of shareholders of “Sakhalin-1”, the Japanese companies, buyers of gas and the regional government with the support of the issue on the project of building a second LNG plant on the island. The new production can be created as early as 2018.

“If we can work together to implement projects to increase LNG production in Sakhalin, in the coming years, we will have time to take a “niche marketing” in the Asia-Pacific region, especially in Japan. I hope that we continue to work together to address the actual problem,” the governor said during the meeting.

He added that the provincial government is very interested in establishing businesses in Sakhalin on deep processing of hydrocarbon raw coal. In this respect, the present work is substantive and, as noted by Alexander Horoshavin, it is open to Japanese partners.

During the meetings some questions raised strong disapproval of building an energy bridge between Sakhalin and Hokkaido, also Sakhalin increasing the supply of coal for its subsequent use to generate electricity at thermal power stations of the rising sun was discussed, as well as the survival of the accident at the nuclear power plant “Fukushima.” These issues have brought interest to the heads of Japanese companies.

April 25, the final day of his stay in the Japanese capital in the framework of the presentation of “Sakhalin – the territory of” Sakhalin Region Governor Alexander Horoshavin had plans to meet with the Deputy Minister of Foreign Affairs of Japan, Matsuyama Masaji.

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LNG World News Staff, April 26, 2013; Image: adm.sakhalin