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Gazprom and Japan Discuss Vladivostok LNG Plant

Source: www.gulfoilandgas.com 6/8/2012, Location: Asia

Tokyo hosted another meeting of the Joint Coordinating Committee (JCC) between Gazprom and the Agency for Natural Resources and Energy under the Japanese Ministry of Economy, Trade and Industry.

The meeting was chaired by Co-Chairmen of the Joint Coordinating Committee (JCC) – Vitaly Markelov, Deputy Chairman of the Gazprom Management Committee and Hisayoshi Ando, Director General of the Agency's Natural Resources and Fuel Department.

The meeting participants discussed the course of bilateral cooperation in the gas sector, including the project of LNG plant construction near Vladivostok, and exchanged their opinions on the issues of sci-tech cooperation.

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.

Gazprom and the Agency for Natural Resources and Energy under the Japanese Ministry of Economy, Trade and Industry signed the five-year Framework Agreement of Cooperation on November 21, 2005. In January 2011 the Agreement was extended for another five-year period. The Agreement sets forth the key areas of bilateral cooperation in the gas sector. A Joint Coordinating Committee (JCC) was established to implement the Agreement. A Joint Working Group is operational within JCC.

On January 11, 2011 Gazprom and the Agency for Natural Resources and Energy under the Japanese Ministry of Economy, Trade and Industry signed the Agreement of Cooperation envisaging preparation of a joint feasibility study on the options for natural gas utilization near Vladivostok as well as for natural gas and gas chemicals transportation from the Vladivostok region and their sales among potential customers in Asia-Pacific countries. Details of the LNG plant construction near Vladivostok were also specified in the Agreement.

In 2011 Gazprom together with the Agency for Natural Resources and Energy as well as with Japanese consortium Japan Far East Gas Company conducted the preliminary feasibility study on the project of the LNG plant construction near Vladivostok. In March 2012 the Gazprom Management Committee resolved to prepare the Investment Rationale for the LNG plant construction near Vladivostok. Preparation for the Investment Rationale is to be completed in late 2012.

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