Gazprom: Japan could finance LNG plant construction in Vladivostok

Japan could take part in financing and marketing the construction of a natural gas liquefaction plant in Vladivostok, Gazprom said in a statement, citing a memorandum the Russian gas giant signed on Saturday with the Japanese Economic and Trade Ministry's Natural Resources and Energy Agency.

"By signing the Memorandum we are approaching to the Vladivostok-LNG project implementation. It will have a great meaning for developing the eastern part of the Unified Gas Supply System of Russia as well as raising Russian gas supplies to Asia-Pacific markets including Japan," Gazprom said citing its Chairman Alexei Miller in a statement posted on its English-language website.

"The Japanese market has an advantageous size and is considered a top-priority in the Far East," Miller said.

"The Asia-Pacific markets [are] the most capacious in the world, and in the next few years the volumes of gas delivered to it by Gazprom will exceed the volume of supplies to Europe. [The] Eastern gas program is our priority and is being actively implemented. But taking into account the dynamics of the growth of gas demand in the Asia-Pacific region, now the decisions will be made of it considerable acceleration," Miller said.

Japan consumed 83 million tonnes of LNG in 2011, with gas currently accounting for 14 percent in the country's energy consumption. As much as 96% of natural gas imported by Japan is shipped in liquefied form, which makes it the world leader in this respect.

In 2011, Gazprom and its Japanese partners conducted a joint feasibility study of the use of gas in the Vladivostok area and sales and transportation of gas and gas-chemical products from the Vladivostok area to potential buyers in the Asia-Pacific region.

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