Japanese shipping heavyweight Mitsui O.S.K. Lines plans to continue energy transport business, mainly of LNG, from Russia as long as possible, MOL President and CEO Takeshi Hashimoto said in his New Year’s address.
“Disruptions in supply chains, soaring energy and grain prices, global inflation, and so on—turmoil continues in a variety of fields. Some companies decided to withdraw from Russia-related business, but our group will continue to offer stable transport services, placing the highest priority on securing the safety of crewmembers, cargo, and vessels, as a company that develops a social infrastructure business centered on ocean shipping, transporting commodities essential to people’s lives,” he said.
“Considering about strategic importance of energy supply under current circumstances, we will continue our energy transport business, mainly LNG, from Russia, as long as we can, and this is also in line with the direction of the Japanese government’s policy.”
Energy imports from Sakhalin 1 and Sakhalin 2 projects in Russia’s Far East are of strategic importance for Japan. As of August 2022, Japan was the world’s largest importer of LNG with 4.3 bn tons imported, with approximately 10% of its LNG from Russian suppliers, Offshore Energy reports quoting data from the US government.
Due to its large dependence on Russian gas, the Japanese government encouraged Mitsui & Co. and Mitsubishi Corporation to continue as investors in the Russian Sakhalin 2 gas project, Offshore Energy adds.
Last year, the Government of the Russian Federation authorized the transfer of shares in Sakhalin Energy LLC, the project operator, to subsidiaries of Mitsui & Co and Mitsubishi Corporation, so that both the companies could retain their shares in the Sakhalin 2 Project.