Japan has reaffirmed its position within the Sakhalin-2 LNG project during a recent G7 follow-up meeting, framing its continued participation as a matter of national energy security rather than geopolitical alignment. Despite sustained pressure from Western partners to reduce exposure to Russian fossil fuels, Tokyo maintains that its stake remains essential to avoid supply instability.
In 2025, Japan accounted for approximately 58% of liquefied natural gas (LNG) purchases from Sakhalin-2, according to project operator Sakhalinskaya Energia. Japanese trading houses Mitsui & Co. and Mitsubishi Corporation collectively hold a 22.5% stake in the project, which is majority-controlled by Russia’s state-owned energy giant Gazprom. The project also resumed limited oil flows to Japan for the first time since 2022, highlighting a partial normalization of energy trade channels.
Tokyo’s position reflects a broader strategic calculation: while Japan has significantly reduced its reliance on Russian energy since the start of the Ukraine conflict, it has deliberately preserved key upstream assets to secure long-term supply stability. Officials argue that the volatility in global energy markets, particularly tensions in the Gulf region, reinforces the need for diversified and reliable baseload sources.
The geopolitical dimension of Sakhalin-2 has also become more complex as alternative buyers increase their presence. China accounted for roughly 23.9% of LNG purchases from the project in 2025, while South Korea absorbed around 17.5%, underscoring the continued importance of the asset within the broader Asian energy system. The project produced around 10.3 million tons of LNG last year, alongside significant volumes of crude oil exports dominated by Chinese demand.
Despite suggestions from U.S. officials that Japan could eventually phase out Russian LNG in favor of alternative projects such as Alaska LNG, Tokyo has signaled no immediate shift in policy. The stance highlights a recurring feature of Japanese energy diplomacy: a pragmatic balance between alliance politics and domestic supply security, where strategic equity participation in external projects remains a central pillar of national resilience.
