Japan's Tohoku Electric studying alternatives to Russian LNG
TOKYO : Japan's Tohoku Electric Power Co Inc is searching for alternative sources to prepare for the worst-case scenario of disruption to Russian liquefied natural gas (LNG) supply, its president said on Friday.
The company, which used to import about 10 per cent of its thermal coal and LNG from Russia, has suspended the purchase of coal, but it still buys LNG from the Sakhalin-2 oil and gas project on Russia's Sakhalin Island, President Kojiro Higuchi told a news conference.
"We are considering a change in procurement sources in preparation for the worst-case scenario in supply from Russia," Higuchi said, adding that it is seeking its long-term LNG suppliers in the United States, Australia, Malaysia and Qatar.
Tohoku Electric has been receiving LNG smoothly from the Sakhalin-2 project, in which Japanese trading houses own stakes, but if it were to be disrupted due to a deterioration in the Russia-Ukraine conflict, it would have a significant impact, Higuchi said.
As for coal, the company expects to be able to procure adequate supply this financial year as some of its coal-fired power plants have been shut due to damage caused by an earthquake in March, he said.
