Gazprom and Itochu address cooperation prospects

Сентября 04, 2013

With its scarce domestic energy resources, Japan is the world's fourth largest energy consumer. Japan purchases 100 per cent of consumed natural gas in the form of LNG and is the world's largest LNG importer.

The Gazprom headquarters hosted a working meeting between Alexey Miller, Chairman of the Company's Management Committee and Eizo Kobayashi, Chairman of Itochu Corporation.

The parties addressed the prospects for bilateral cooperation in the energy sector. Particularly, the meeting focused on the Vladivostok-LNG project, including LNG marketing in Japan.

In addition, the parties considered a possibility of cooperation under the South Stream project as well as issues related to the creation of gas chemical capacities in Bashkiria.

In January 2011 Gazprom and the Agency for Natural Resources and Energy (ANRE) under the Japanese Ministry of Economy, Trade and Industry signed the Agreement of Cooperation envisaging the preparation of a joint feasibility study on the options for natural gas use near Vladivostok as well as for natural gas and gas chemicals transportation from the Vladivostok region and their sales to potential customers in Asia-Pacific. The Agreement also contains the details of the LNG plant construction near Vladivostok.

A consortium of Japanese companies – Japan Far East Gas Co., Ltd. (ITOCHU, JAPEX, MARUBENI, INPEX, CIECO) – was established with the assistance of the Japanese Agency for Natural Resources and Energy. The consortium members were selected by the Japanese feasibility study performers.

In February 2013 Gazprom took the final investment decision on the Vladivostok-LNG project.

In June 2013 Gazprom and JAPAN FAR EAST GAS Co., Ltd. signed the Memorandum of Understanding on the Vladivostok-LNG project. The document sets the main principles of further joint activities under the project and contains the agreements with regard to the project products marketing in Japan.

Itochu is among Japan's largest general trading companies. It is active in oil and gas production and processing projects. In late 2010 Itochu became a shareholder of JAPAN FAR EAST GAS Co., Ltd.