Japan looks afresh at Russian pipeline gas.

Hideo Ogawa, president of Japan Pipeline Development & Operation, spoke to Interfax about the company‘s plans to build a 20 billion cubic metre per year pipeline between Japan and Russia and its possible impact on the global LNG market.

The maximum capacity of the pipeline will be 20 bcm/y and the estimated maximum cost will be ¥600 billion [$5.87 billion]. We hope to take an FID in the fiscal year 2014 [the fiscal year in Japan runs from April to March]. There will also be a full development survey and preparation for construction in fiscal 2014. Construction work would then run from fiscal 2015 to 2019.

In reality, there are no remaining hurdles to the project. The domestic barriers can be overcome and full cooperation from the Russian side would mean the project could be implemented immediately. The Japanese government has given its support to it as a private undertaking.

http://www.interfax.com/interview.asp?id=501609

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