Tohoku Electric eyes eventual halt to Russian LNG purchase

Tohoku Electric Power, Incorporated

14/02/2025 10:56

TOKYO, Feb 14 (Reuters) - Japan's Tohoku Electric Power
 9506.T  needs to consider its procurement strategy for
liquefied natural gas (LNG), assuming it will eventually halt
purchases from Russia, President Kojiro Higuchi said on Friday.
    The utility imports 420,000 metric tons of LNG annually from
Russia's Sakhalin-2 project under a 20-year contract through
fiscal 2029.
        Higuchi said that accounted for about 10% of the
company's LNG.
    "We must think (about future procurement plans) on the
premise that we will eventually stop buying from Russia," he
told a news conference. 
    The company later said that no decision has been made
regarding the renewal of the contract, noting that it will
reexamine the situation at the time of expiration before
deciding whether to continue the purchase.
    Resource-scarce Japan is shoring up long-term supplies of
LNG from close allies Australia and the United States as key
contracts from providers including Russia are set to expire by
the early 2030s.
    Last week, U.S. President Donald Trump said that Japan will
soon begin importing a record amount of new shipments of
American LNG, after his talks with Japanese Prime Minister
Shigeru Ishiba.
    Tohoku Electric already buys LNG from the U.S. and it will
consider whether to increase purchases based on a comprehensive
assessment of competitive pricing, procurement stability and
diversification, Higuchi said.
    "In the midst of instability in the Middle East and global
uncertainty, diversifying energy procurement sources is crucial
for risk management," he added.

 (Reporting by Yuka Obayashi; Editing by Susan Fenton)
 ((Yuka.Obayashi@thomsonreuters.com; +813-4520-1265;))