Russian Power "switch" to Japan, all further away from Europe

Heads of major energy producers Russia - a country with the world's largest natural gas fields, a number of meetings in Japan, actively offering deliveryliquefied natural gas (LNG). Most likely, the reason for the reduction in gas exports to Europe from the U.S. shale revolution, resulting in Russian companies started to look for opportunities to increase gas supplies to Japan.

March 13 Russian Energy Minister Novak visited Japan and with the participation of leaders of "Novatek" - natural gas producer number two in Russia - held talks with the directors of Japanese companies such as TEPCO, Tokyo Gas, Mitsui & Co., Marubeni Co. In a media statement the Minister of Energy has indicated that with Japan reached an agreement to establish a joint working group between the two companies, which will be engaged in LNG plant, which Novatek plans to build on the Yamal peninsula in northern Russia, the magazine writes, " Mainichi ".

President of the state company "Rosneft", took first place in Russia in terms of oil production Igor Sechin came to Japan at the end of February. He did a presentation of the project of construction of the plant for processing of natural gas into LNG "Sakhalin-1" of five Japanese companies, such as Marubeni and Itochu.

President Vladimir Putin in mid-February marked the problem of the low share of Russia in the global market for liquefied natural gas (3%), noting that " unless we take immediate action, we may have lost market ". Relevant ministries he instructed to consider withdrawing the monopoly of the state corporation "Gazprom" on gas exports. This served as a detonator for talks on supplies to Japan such "secondary" companies as "Rosneft".

On the other hand, a joint venture between Gazprom and Japanese companies Mitsui & Co and Mitsubishi Corporation produces about 10 million tons of LNG per year, of which about 70% are shipped to Japan. In addition, it was decided to build a new LNG plant near Vladivostok in the Russian Far East, the Japanese research and trading companies considering participation in this project.

Production of shale gas in the U.S. grows, Qatari LNG plants, working for the U.S., turned towards the European market. As a result, the volume of Russian gas sold in Europe last year, decreased by 7.4% compared to the year before last performance. LNG plant in the Far East Russia is a strategic step to increase supplies in Asia, including not only Japan, but also China and South Korea.

Prime Minister of Japan Abe plans to pay an official visit to Russia at the end of April. The heads of government of Japan did not go to Russia for a decade. At a meeting of heads of state of Russia and Japan to discuss the important issues are likely to become not just a problem of the northern territories, and energy cooperation on the basis of LNG.

After the accident at the Fukushima-1 nuclear power plant, Japan can not run their nuclear power plants at full capacity, which is reflected in the actions to curb the price of gas, which is used as fuel for thermal power plants.

Japan in 2011 imported 8318 million tons of liquefied natural gas. Of these, approximately 30% for the Middle East, such as Qatar. Russia followed by Malaysia (18%) and Australia (16%) with their 9%. Middle East countries, as oil-producing countries, set purchase prices with reference to oil. Even with the lower prices for LNG in the U.S. market after a sharp expansion of shale gas in Japan, heavily dependent on the Middle East, has to buy raw materials at high prices.

The key to controlling the price of LNG in the "Increase in negotiating the price by increasing the number of suppliers" (Department of the Ministry of Economy, Trade and Industry of Japan). Gas prices are also linked to oil, and cheap at the moment is difficult to name them. However, Chubu Electric Power Co., Osaka Gas, Tokyo Gas and other energy companies in Japan talk about "the possibility of reducing Russian price" if the negotiations play cards go to supplies of shale gas in North America and reduce the demand for gas in Europe. Representative of the Ministry of Economy, Trade and Industry of Japan also speaks of "the possibility of fast deliveries from Russia in case of emergencies due to proximity," hoping in this way to maintain energy security in the event of emergency.