Japan’s dependence on natural gas

Editor’s note: Japan is the largest importer in the world for natural gas and receives approximately 9 percent of its gas from Russia. Japan in December, 2023 imported the highest monthly volume of liquefied natural gas (LNG) from Russia in seven years at 833,000 metric tons. Without natural gas the economy of japan shuts down, so Japan is extremely sensitive concerning its foreign relations. Japan has to be particularly cautious about how it approaches Russia over Ukraine with Japan following the US lead on its position concerning the support of Ukraine. Approximately 60% of LNG produced by Sakhalin 2 project is supplied to Japan. As Sakhalin being located in the Russian Far East which is proximate to Japan, this project significantly contributes to Japan’s energy security. So far Japan’s Mitsui has no plans to pull out of the Sakhalin 2 project. Japan has no choice. The further away Japan is forced to go for its natural gas the more expensive it will become. It is strange that very few Japanese have any comprehension of what this means for their every day lives. Considering the Sakhalin 2 project is one of the key energy sources for Japan it would behoove the Japanese to make attempts at getting a long better with Russia.

Source: The Intel Drop

Japan-Turkmenistan: a long-standing bilateral partnership and a bridge to Central Asian geopolitics?

By Intel-Drop  | March 29, 2024

On 22-23 January 2024, Turkmen Foreign Minister R. Meredow visited Japan. During this trip, meetings were held with the Japanese Foreign Minister, the Ministers of Digital Transformation; Land, Infrastructure, Transport and Tourism; Economy, Trade and Industry; representatives of Japanese business, the Director of the Foreign Trade Organisation of Japan and the Head of the Export Credit Organisation of Japan.

The leitmotif of the talks was the cooperation between the two countries in the field of gas transmission and hydrogen production.

The first area is currently of strategic importance for Turkmenistan: apparently, the U.S. assistance in preventing methane leaks at gas pipelines in the country has proved insufficient – at the same time, these leaks are one of the main obstacles to the export of Turkmen gas to the European Union. Turkmenistan made a commitment at the Abu Dhabi Climate Change Conference (December 2023) to reduce methane emissions, dictated in part by the need to find new markets for its main export resource. It is likely that Japan can also help it to move in this direction. Turkmenistan also has other problems in the field of gas transportation, in particular, the lack of modern gas pipeline technologies.

At the same time, hydrogen production is a very promising industry for the republic. One of the technologies for environmentally friendly hydrogen production is steam conversion of methane and natural gas, both of which are available in Turkmenistan in more than sufficient quantities. Therefore, by developing hydrogen production, Turkmenistan can both diversify its very homogeneous exports and contribute to the fight against climate change. Japan can become a favourable partner for Turkmenistan in this matter – this country is one of the world leaders in the introduction of hydrogen in industry, energy and transport: its position in the field of hydrogen engines (both electrochemical converters and hydrogen internal combustion engines) for cars is particularly strong.

In turn, Japan is interested in providing projects to its large companies in foreign countries, as well as in optimising exports: in this respect, Turkmenistan, although a small state, may become a territory with a number of preferences for Japanese goods and firms in the domestic market due to the significant degree of centralisation of management of the national economy. Hypothetically, Japan, which is actively introducing hydrogen technologies in energy and transport, may be interested in its prospective imports from Turkmenistan: however, the logistical support of such supplies should be recognised as a very difficult task. Also, Japan is one of the largest importers of natural gas in the world, which may also be interested in Turkmenistan’s more traditional energy feedstock, but establishing supplies is difficult for the reasons already mentioned above. The parties probably see the solution to the logistical difficulties in the further development of continental highways in Central Asia – especially promising routes connecting the region to the Indian Ocean. The infrastructural interest of the Japanese in Turkmenistan is also proved by the visit of representatives of the Japan International Cooperation Agency (JICA) to the international sea port of Türkmenbaşy on 6 March 2024 “in order to get acquainted with the capabilities and services of the port”.

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