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Japan-Russia Natural Gas Pipeline Project Outlines

Overview Image of the Project


The project is an extremely efficient, simple gas transportation and supply service, directly connecting by pipeline, the Russian pipeline at southern Sakhalin with destination of demand in eastern Japan. By using the trunk pipeline from southern Sakhalin to eastern Japan, it is possible to develop various related businesses including gas sales, gas power generation, cogeneration, city gas service, compressed gas service, gas chemicals, and information and communications service. Supply lines will be developed from trunk pipeline into necessary and possible areas.

The map on the left shows the Japan-Russia Natural Gas Pipeline plan added to the extensive natural gas pipeline route planned by the government.

Evidence for the Economic Feasibility of the Project

Securing of sufficient supply sources

With the longstanding cooperation of the Government of the Russian Federation over the years, we have been developing the project plan on the assumption of connecting the Japan-Russia pipeline to the Russian pipeline linking groups of gas fields including Sakhalin 3, etc.

Securing of sufficient demand destinations

Low cost gas direct transporting from the gas fields has strong competitiveness.
Therefore, sufficient pipeline gas will be consumed to make up for the loss of nuclear power generation and converting fuel used by the existing power plants along the pipeline route. It will be also possible to secure sufficient demand for pipeline gas from cogeneration, supplemental power sources to support renewable energy, industries and business operations, and other gas utilization services along the pipeline route.

Evidence for the Technical Feasibility of the Project

Development of the Russian part of pipeline

There are no particular technical problems with the pipeline from the gas fields in northern Sakhalin to southern Sakhalin since such a pipeline has already been developed and operated by Sakhalin 2. Technical feasibility of constructing pipeline from southern Sakhalin to northern Hokkaido has already been investigated by a group led by a major Gazprom Group engineering company as well as major engineering companies from the U.S., Europe and Japan, which concluded that there would be no particular technical problems.

Development of the Japanese part of pipeline

The technical feasibility of constructing pipeline from northern Hokkaido to eastern Aomori Prefecture was jointly investigated and confirmed by major engineering companies in the U.S. and Japan. As the pipeline between eastern Aomori Prefecture and the eastern Tokyo metropolitan area will take an onshore route based on existing public infrastructure such as national roads, it will be implemented smoothly with the cooperation of the Ministry of Land, Infrastructure, Transport and Tourism of the Japanese government. There are sure to be no environmental problems with fishing rights.

Earthquake countermeasures

The trunk pipeline was not damaged at all and remained quite normal even after the 2004 Niigata Earthquake and the 2011 Great East Japan Earthquake, which proves that Japan still has the top quake-resistant engineering technology in the world. Now the Japanese government has set out a policy to develop extensive natural gas pipeline nationwide, and this also confirms the trustworthiness of our quake-resistant engineering technology.

Implementation System of the Project

Financing system

As the profitability and cash flows of the project are sufficiently clear, the necessary funds for the project can be easily procured by the cooperation of many related businesses both in Japan and overseas. We have been already procured necessary framework of funds for the implementation of the project by international investment and loan institutions.

Organization system

With the cooperation of related businesses of the project and investment and loan institutions on the Japanese side, we are expecting to make entry into the project from Russian companies and with other leading companies from the U.S., Europe, Asia and Australia that have been cooperating for the implementation of the project.

Advantages of Implementing the Project

Advantages on the Japanese side

Implementation of the project will be able to make a great contribution in helping to deal with certain important pending policy issues facing the Japanese government: That is to say, (1)the policy of promoting of the conclusion of the Japan-Russia peace treaty and peaceful coexistence in East Asia (2)the policy of economic growth strategy in Japan and international economic cooperation (3)the policy of recovery of the disaster areas damaged by the Great East Japan Earthquake and developing necessary infrastructure (4)the policy of national resilience and regional revitalization (5)the policy of reducing nuclear power plants and securing necessary supplemental power sources (6)the policy of developing an extensive natural gas pipeline and implementing it under private sector initiative (7)the policy of expanding renewable energy and securing measures necessary for its stable supply (8)the policy of reducing the cost of importing gas and diversifying necessary means of importing gas that will greatly contribute to the country.

Advantages on the Russian side

The Russian side will be able to obtain big profits by implementing the project. That is to say, (1)apart from exports LNG plants, this will enable to export large quantity of stable long-term natural gas to Japan (2)the location of the gas fields such as Sakhalin 3 Kirinsky is close to southern tip of Sakhalin. Therefore, it is possible to construct pipeline at low cost compare to Europe or China (3)there is no need for huge capital investment to construct any LNG liquefaction plant because the pipeline to the southern Sakhalin will be connected directly to the pipeline on the Japanese side (4)Russia will be able to enter into various downstream businesses through the pipeline project including gas power plants in Japan.

For steady implementation

The project is based on the Japan-Russia Summit agreement and we have been already started full-scale preparation work for the implementation of the project led by a private sector. We are committed to take all necessary action for understanding and cooperation from the ruling party, the central government, municipalities and business world as well as from customers and consumers. We will strive to make steady progress toward the earliest possible implementation of the project by asking Russia to develop its implementation system from a broad viewpoint of mutually-beneficial economic development and promoting the strengthening of cooperation between Japan and Russia as well as by encouraging related organization in the U.S., Europe, Asia and Australia to cooperate and participate in the project.