As Japan¡¯s long-term contracts to secure liquefied natural gas (LNG) from Russia¡¯s Sakhalin-2 project near expiration, rival producers see opportunity to fill the supply gap, even as Tokyo looks to switch to cleaner energy, industry insiders say.
The country¡¯s declining demand for gas plus geopolitical pressure on Tokyo to curb its reliance on fuels from Russia mean Japanese buyers may not want to renew all of their contracts with a supplier long favored for its proximity and reliability.
Japan, the world¡¯s second-biggest LNG buyer, depends on Russia for 9% of its LNG, or 6 million metric tons per year, 5 million of which come from the long-term contracts at Sakhalin-2 run by the Kremlin-controlled Gazprom.
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