PRZOOM - /newswire/ -
Delhi, New Delhi, India, 2007/04/23 - At a ministry level meeting in Tokyo, Russia and Japan committed to fortify mutual relations in oil and natural gas development and enhance trade.
Taro Aso, Japanese foreign minister and Viktor Khristenko, Russian energy minister, acceded that their countries will loosen the trade boundaries to encompass sectors like fishery and agricultural products, energy, IT and transportation.
The two ministers talked about two oil and gas projects in Sakhalin Island in Russia and an oil pipeline project in East Siberia, informed a foreign ministry official from Japan on the condition of keeping his identity close.
The Russian energy minister called the Japanese market vital for Russian oil and gas exports. Japan imports around 79% of its oil from Middle East but now it is raising its dependence on energy assets, like gas, oil, and uranium enrichment process from Russia to beef up its supply security.
Senior energy analyst at Mizuho Securities Co., Tokyo, Hidetoshi Shioda, said in a telephonic conversation reported by Bloomberg.com on February 26, 2007, “Japan should expand oil and gas imports from Russia. Cutting dependence on Middle East means mitigating risks of any supply disruption in the region in the years ahead”.
Aso informed Khristenko, the Russian energy minister, that Japan is interested in importing LNG (Liquefied Natural Gas) from Sakhalin-1 project (led by Exxon Mobil) that started exporting oil from DeKastri terminal of Russia in 2006.
As the oil prices are shooting high (prices have grown by $40 per barrel from 2003 to 2006) and energy demand is skyrocketing both in Asiatic and worldwide, energy resource possessors naturally intend to produce and export the maximum to gain large market share and take benefit of higher prices.
According to “European LNG Market Analysis”, a market research report by RNCOS, Russia has the largest gas reserves in the world, with current estimates of about 47.82 trillion cubic meter, which is equivalent to 27% of the proven recoverable reserves. Corresponding to its large gas reserves, the Russian Federation is the largest producer of natural gas in the world. It currently exports its natural gas through pipeline to approx 30 countries including Germany, Ukraine, and Italy but doesn’t export LNG. But the recent discussions with Japan indicate that the country will soon start exporting its LNG.
The report gives a detailed overview of Russian LNG market with projects in pipeline and demand and supply statistics. European LNG market has been discussed in detail with focus on key markets in the region. Industry analysis, challenges, opportunities, and competitive landscape, supplemented with statistical data from authentic sources have been give for investors.
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