Asked how Japan can lower its reliance to the Middle East, Kito said: "We'd like to diversify our suppliers, but it is difficult to find stable partners or countries." "So it's important to further strengthen the connections with the Middle East in terms of energy security for the time being," he said. (Reporting by Yuka Obayashi; Editing by Christian Schmollinger)
By Yuka Obayashi
TOKYO, Feb 15 (Reuters) - Japanese oil refiners may buy
Russian crude from the Sakhalin-2 oil and gas project, if
needed, to secure a stable supply of liquefied natural gas
(LNG), the president of the Petroleum Association of Japan (PAJ)
said on Wednesday.
But Russian oil, in general, is not necessary for a stable
supply to Japan and Japanese refiners should instead look for
sources in other countries where risks are lower, PAJ President
Shunichi Kito said, pointing to the hurdles of securing payment,
ships and insurance for Russian crude.
"At least, as an individual company, we don't intend to
stick to Russian crude," Kito, who is also the president of
Idemitsu Kosan Co Ltd , told a news conference.
Still, LNG from the Sakhalin-2 project in Russia's far east
is important as a power generation fuel in Japan, and oil
imports associated with securing stable LNG from the project may
emerge, he said.
Japan is sounding out major oil refiners about buying
Russian ultra-light crude from Sakhalin-2 to ensure that the
plant can continue to operate smoothly, two sources with direct
knowledge of the talks told Reuters late last year.
Refiners in the world's third-largest economy, which is
heavily reliant on energy imports, have suspended Russian oil
purchases since mid-2022 after Tokyo agreed to phase them out
with other G7 countries in response to Moscow's invasion of
Ukraine.
They have sought alternatives from the Middle East, such as
Saudi Arabia, which boosted Japan's oil dependence on the region
to 94%.
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