Japan, Russia Lend Support to Vladivostok LNG Project

Japan and Russia have agreed to throw their support behind a private-sector project to build a liquefied natural gas plant in Russia's Far East, AFP has reported.

Japanese trade and industry minister Yukio Edano and Russian energy minister Alexander Novak signed a memorandum of understanding on the sidelines of an Asia-Pacific Economic Cooperation forum in St. Petersburg at the weekend, which concerns a plant in Vladivostok that is expected to produce 10 million tonnes of LNG annually.

"As it is important for Japan to diversify its energy supply sources, the government has constantly backed the project," AFP reported trade ministry official Tsutomu Kato as saying.

A Japanese consortium led by trading house Itochu is expected to build the plant with Russia's Gazprom, at the cost of 12.45 billion. The facility will receive natural gas from other parts of Russia and convert it to LNG before shipping it to countries in the Asia-Pacific.