The US on Thursday imposed the measures on Arctic LNG 2 project, which includes Japan’s government as an investor and is set to start exports in the coming months.
While Japan has imposed restrictions on Russia and banned coal imports, its government has drawn a line at natural gas, which is used to generate about a third of its electricity and heat homes.
Japan insists Russian LNG is essential to meet energy needs and last year urged Mitsui & Co. and Mitsubishi Corp. to maintain investment in the Sakhalin II LNG project in Russia’s far east.
Thus, the new sanctions on Arctic LNG 2 will test Japan’s relationships with other G-7 nations.
It is possible that Western-aligned offtakers will be granted exemptions to the sanctions. However, so far there are none.
The need to “be granted” permission to maintain your own energy security… must be fun?