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Updated February 9th, 2022 at 17:42 IST

Japan Industry Minister announces import of LNG reserves to Europe amid Ukraine tensions

Japan's Industry Minister, Koichi Hagiuda, announced on Wednesday that his country will provide a portion of its liquefied natural gas (LNG) imports to Europe.

Reported by: Aparna Shandilya
Japan
Image: AP | Image:self
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Japan's Industry Minister, Koichi Hagiuda, announced on Wednesday that his country will provide a portion of its liquefied natural gas (LNG) imports to Europe, as growing tensions between Russia and the West over Ukraine, destabilise regional energy security. According to official sources, Japan, a major LNG importer, will secure sufficient supplies for domestic needs before assisting European countries experiencing disruptions in Russian gas supply in case of Russian invasion of Ukraine, Kyodo news reported.

While discussions on the volume and timing of LNG diverted to Europe continue, the government is likely to ask Japanese enterprises involved in the LNG market for their cooperation. With Russia supplying over 40% of Europe's LNG imports, the US has asked Japan to extend energy support to assure steady energy supplies in the region during winter.

If Russia, which has massed forces along the Ukrainian border, invades, the US has threatened penalties. In response to Western sanctions, there is growing concern that Moscow may impose major restrictions on LNG supply to Europe. The US and the European Union reaffirmed their resolve to handle concerns related to the bloc's energy supply at an energy council meeting in Washington earlier this week.

Russia will not hesitate to use its energy supply to Europe as weapon for geopolitical gain

As global energy costs rise, EU foreign policy leader Josep Borrell told the audience that Russia will not hesitate to use its energy supply to Europe as a weapon for geopolitical gain. Noting that Russia's state-owned enterprises are delaying natural gas exports, US Secretary of State Antony Blinken said that Washington is in talks with governments and key producers around the world to ensure energy supplies throughout Europe, including Ukraine.

After meeting with German Chancellor Olaf Scholz on February 7, US President Joe Biden warned that the yet-to-be-activated Nord Stream 2, a gas pipeline project connecting Germany and Russia via the Baltic Sea, would be suspended if Russian forces crossed into Ukraine. Moreover, Japan's LNG initiative is part of a larger international endeavour. 

Despite the fact that Japan has a larger LNG stockpile this winter than last, some in the energy sector feel that it will be difficult to offer surplus LNG in February due to the probability of a demand spike. According to diplomatic sources, the US has encouraged Japan to consider putting economic penalties on Russia if Russian soldiers invade Ukraine, Kyodo news reported.

(With inputs from Agencies)

Image: AP

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Published February 9th, 2022 at 17:42 IST

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