Japan’s top utilities say they can secure alternative liquefied natural gas (LNG) supplies if shipments from Russia’s Sakhalin-2 project are disrupted, even as Washington urges Tokyo to cut energy ties with Moscow. The Sakhalin-2 field currently provides about 9% of Japan’s LNG imports under long-term contracts.
The United States has been pressing Japan and other buyers to halt Russian energy purchases as part of broader efforts to isolate the Kremlin over its war in Ukraine.
Why It Matters
Losing Sakhalin-2 gas would test Japan’s energy security, but utilities appear confident. JERA, Japan’s largest LNG buyer, said its wide portfolio of 30–35 million tons annually and access to the spot market would allow it to make up for any shortfall. Tohoku Electric Power, which sources around 10% of its LNG from Sakhalin, said it is diversifying its imports to guard against a sudden cutoff.
Prime Minister Sanae Takaichi told U.S. President Donald Trump that a total ban on Russian LNG would be difficult, underscoring Japan’s delicate balance between energy needs and political pressure from its ally.
JERA and Tohoku Electric are directly affected as key importers. The Japanese government faces competing demands maintaining energy stability while aligning with U.S. sanctions policy.
Washington continues to push Tokyo to join the $44 billion Alaska LNG project, which President Trump and Treasury Secretary Scott Bessent have promoted as a future alternative. However, Japanese firms remain cautious, citing uncertainty over the project’s cost, logistics, and long-term feasibility.
Future Outlook
Japan is expanding emergency LNG reserves and exploring new suppliers, including the United States, to reduce dependence on Russia. JERA and Tokyo Gas are still conducting feasibility studies on Alaska LNG, wary of committing before clearer financial terms emerge. For now, Japan’s message is pragmatic: while it seeks to diversify, any abrupt end to Russian imports could disrupt Asia’s energy markets and push up global LNG prices.
With information from Reuters.