RUSSIAN LNG FOR JAPAN
PLATTS - Russia and Japan are considering further expansion of their economic cooperation, a core element of which is energy projects, following a meeting between national leaders and the signing of new cooperation agreements between several companies in Vladivostok on Monday.
"The energy sector is a key area of bilateral cooperation," Russian President Vladimir Putin said following a meeting with Japanese Prime Minister Shinzo Abe, ahead of the opening of the Eastern Economic Forum in Vladivostok on Tuesday.
Putin said the LNG sector in particular was a key focus area for future cooperation, noting that Japanese companies may take part in the planned expansion of Sakhalin 2, Arctic LNG 2 and Baltic LNG projects as well as an LNG transshipment facility in Kamchatka.
Following the meeting on Monday, several Russian and Japanese companies signed agreements, including Novatek and Jogmec who signed a memorandum of understanding on LNG cooperation.
The MoU covers exploring opportunities for cooperation "on Novatek's projects in the Yamal and Gydan peninsulas, including the Arctic LNG 2 project and on developing a regular transport link via the Northern Sea Route for LNG deliveries to the Japanese and Asia-Pacific markets, as well as exploring LNG marketing opportunities in the Asia-Pacific region," Novatek said.
Novatek CEO Leonid Mikhelson said Japan was "one of the most significant global LNG markets. We expect further expansion of cooperation in this area which will facilitate the development of trade and economic relations between our countries."
Welcoming international interest in the project, he said: "Our prolific hydrocarbon resource base combined with our experience in implementing large-scale LNG projects and navigating the Northern Sea Route creates a solid platform for mutually beneficial cooperation."
Other deals signed after the meeting included an agreement on the key terms of construction of a methanol production unit and chemical plant in Volgograd, signed by the Russian Direct Investment Fund, Japan's Marubeni Corporation and AEON Infrastructure Corporation. Japanese corporation SBI Holdings also agreed to join a consortium of investors in Sovcombank, RDIF said.
Putin is due to meet Chinese and South Korean leaders as well as hold further talks with Abe this week.
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