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Thian Teck Siow
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Business Impact: Opportunities and Challenges
Shift to Rival LNG Suppliers:
New projects in Alaska, western Canada, Malaysia, and Oman are gaining traction. These suppliers, though slightly farther than Sakhalin, offer geopolitical stability, making them attractive alternatives.

Is Japan Ready to Exit Russian LNG? The Shift to Cleaner Energy and Rival Suppliers
The global energy landscape is shifting, and Japan finds itself at a crossroads. With long-term LNG contracts from Russia's Sakhalin-2 project nearing expiration (between 2026 and 2033), Japan faces a pivotal decision: renew its reliance on Russian LNG or pivot to alternatives. This decision isn't just about energy—it’s about geopolitics, sustainability, and economic strategy.

Why Is This Crucial Now?
Japan, the world's second-largest LNG importer, sources 9% of its LNG from Russia, primarily through Sakhalin-2. While its geographical proximity gives Sakhalin a cost and time advantage, the geopolitical tension surrounding Russia's Ukraine invasion and G7 commitments to reduce dependence on Russian energy have shifted the narrative.
Moreover, Japan's domestic energy transition aims to slash LNG's share in power generation from 33% (2023) to 20% by 2030 while expanding renewable energy to 38%. This aligns with global calls for cleaner energy solutions but introduces supply chain challenges.
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