Global Valve and Controls
15May/17Off

Japan plans to purchase more oil and gas from Russia

Japan has been buying its oil and gas from the Middle East  but now the country has made a public statement that they are more interested in what Russia has to offer than the Middle East. Traditionally Japan buys most of the oil and gas in Middle East countries. And we are concerned about this dependence because this route is very unsafe, fraught with geopolitical risks. For us it is very important to ensure that the Northern route of energy supply, i.e. from Russia. This is very important from the point of view of energy security of our country”, — said the Minister.

The reason behind Japans decision is because the route to Russia is considered more safe and less costly especially since the company Rosneft has started to drill again. Russian oil, which can be delivered to Japan in a few days, gives the world's fourth-biggest buyer a flexibility to make purchases closer to target delivery dates than for crude from other suppliers. No one is sure how the Middle East will respond to this.  Russia is also the fourth-biggest supplier of LNG (liquefied natural gas) to Japan.  Tokyo and Moscow are also discussing the prospect of building a gas pipeline to link the two countries together.

 

http://oilpro.com/announcement/4804/japan-aims-to-buy-more-lng-russia