Gazprom and Japanese Agency for Natural Resources and Energy address Investment Rationale for Vladivostok-LNG Project

Fukui (Japan) hosted today the eighth meeting of the Joint Coordinating Committee (JCC) between Gazprom and the Agency for Natural Resources and Energy (ANRE) under the Japanese Ministry of Economy, Trade and Industry. The meeting was chaired by the JCC Co-chairmen – Vitaly Markelov Deputy Chairman of the Gazprom Management Committee and Hisayoshi Ando, Head of the Natural Resources and Fuel Department of the Agency for Natural Resources and Energy under the Japanese Ministry of Economy, Trade and Industry.

The parties considered the information submitted by Gazprom regarding the Investment Rationale completed for the Vladivostok-LNG project. The meeting stressed the paramount importance of this project for deeper Russian-Japanese cooperation in the energy sector and addressed further project priorities.

In addition, the meeting participants reviewed the progress with the Program for Sci-Tech Cooperation between Gazprom and ANRE in 2012–2014.


Background

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 Framework Agreement of Cooperation. The document sets forth the key areas of the 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. In November 2012 Gazprom and the Agency for Natural Resources and Energy inked the Program for Sci-Tech Cooperation in 2012–2014.

On January 11, 2011 Gazprom and the Japanese Agency for Natural Resources and Energy 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 Gazprom resolved to compile the Investment Rationale for the LNG plant construction near Vladivostok. In February 2013 Gazprom adopted the final investment decision on the Vladivostok-LNG project. In March 2013 the Action Plan on constructing the LNG plant near Vladivostok was approved as well as the Plan for establishing the project’s resource base.