Japan Pipeline Development Organization (JPDO) was founded to make a reality of the idea for the project first envisioned in 1974.

The “International Conference on Promotion of the Sakhalin-Hokkaido Natural Gas Pipeline”, Hokkaido’s first international conference concerning the natural gas pipeline, was held attended by representatives of the world’s major oil companies as well as political, administrative, economic, academic and media circles both inside and outside Japan, under the auspices of the Hokkaido Development Bureau, the Hokkaido Bureau of International Trade & Industry, the Hokkaido Government, the Russian General Consulate and the U.S. Consulate General. Following this, a feasibility study undertaken in conjunction with the major U.S. oil company Texaco reached the conclusion that the project was feasible. The plan for the project was announced at the London International Conference as well as at a general meeting of the Federation of Diet Members for Promoting the Asian Energy Community which was held at the Diet Members’ Building.

JPDO and executives from U.S. Texaco visited the Hokkaido Governor and asked for cooperation and assistance in joint US-Japan operation of the project. Domestic and international cooperation was also sought at an open forum with representatives from Japan, the US and Russia as the primary participants.

As an initial consultation with the government, a detailed survey report for the pipeline construction compiled by JPDO and U.S. United Technologies Corporation was submitted to relevant government organizations and municipalities. A resolution to promote the project was passed at a convention of All Hokkaido Chambers of Commerce and Industry, which has since been reaffirmed at every subsequent annual convention.

In Moscow, JPDO held talks with the Russian Federation Government, Russian state-run Gazprom Group and Rosneft Group, at which a basic agreement was reached covering gas supply by the Russian side, pipeline construction, and terms for entry into the project. At a session of the Hokkaido Assembly, the Governor advocated environmental arrangement for the pipeline construction and benefit of the use of pipeline gas. A number of municipal assemblies also issued written statements backing the project.

Speaking in turn at a session of the diet, the ministers heading each of the government ministries concerned, along with top officials from the Ministry of Economy, Trade and Industry, expressed their commitment to taking measures in support of development of the pipeline. The Diet Members’ Federation for Promoting Pipeline Development was formed at Liberal Democratic Party’s headquarters. The chairman of the Federation was among those invited to the Hokkaido Convention for Promoting Pipeline Development which was held in Sapporo.

A Sakhalin Seminar was held in Yuzhno-Sakhalinsk in cooperation with the Sakhalin State Government and the Russian state-run corporate group. In Moscow, a joint memorandum was signed with Russian state-run Gazprom Group, with the support of the Russian Federation Government, affirming the commitment of both sides to jointly undertake the project.

JPDO and the Russian state-run Gazprom Group signed agreement on all matters required to begin implementation of the project. With a contract signed with Gazprom Group on a feasibility study for the pipeline from Sakhalin, Russia to Hokkaido, Japan, feasibility study work was begun. Concrete steps were taken on preparatory work for the pipeline in Japan in cooperation with the Ministry of Land, Infrastructure and Transport, the Ministry of Economy, Trade and Industry and the municipalities involved.

With an engineering study report on the feasibility of the Sakhalin-Hokkaido pipeline project based on joint Russia-Japan work and a project action plan, prior consultation with the Russian Federation Government was started concerning an application for a government permit. Mutual understanding was reached for gas supply from Russia, pipeline construction, project entry and participation in investment. The Ministry of Economy, Trade and Industry issued the Minister’s written recommendation on Nayoro Natural Gas Power Station, in accordance with a review by the Thermal Power Division. Following prior consultation with the Russian Federation Government, detailed discussions were made with Gazprom itself. Gazprom launched a detailed study of the project.

An interdisciplinary executive meeting in Gazprom, representing a cross-section of its various departments involved, concluded that the project shows promising. Russia’s Eastern Gas Program was officially approved. A confidentiality agreement on the progress of detailed consultations was signed between Gazprom and JPDO. The corporate name was changed to Japan Pipeline Development & Operation Inc. (JPDO).

Full-scale preparation of formalities for the construction of the pipeline from Wakkanai to Tomatoh began. JPDO received a written reply from Hokkaido Electric Power Co., Inc. indicating the possibility of being linked to the Tomatoh Power Station. At the request of the Russian side, JPDO presented the project at the Far Eastern International Economic Forum in Russia.

JPDO began to consult with the Russian side concerning the development of the project based on the development of an LNG liquefaction base and other related businesses at the Tomatoh industrial area of Hokkaido. The South Korean side indicated its intention to enter the project, centering on its upstream business.

The Government of the Russian Federation (Ministry of Energy) evaluated and accepted the newly restructured project. Consultation began between the Ministry of Energy and Gazprom. Gazprom conducted a full-scale boring survey in Sakhalin-3’s Kirinsky Block.

The Great East Japan Earthquake led Japan to a fundamental review of its energy policy, which had depended mainly on nuclear power. Our project began to attract attention from various fields as an effective means to secure clean energy and reconstruct the disaster areas.