Japan Plans to Build Undersea Gas Pipe

Japan intends to activate energy cooperation with Russia. In its new plan, Japan plans to build an oil refining plant which is not far from Vladivostok and build under gas pipe from Sakhalin to Tokyo crossing though Japan Sea.
Mayor of Niigata announced that the oil refining plant would be invested and build completely by Japanese and Niigata would become the main transfer terminal of products manufactured in the plant.
The new plant will provide new power for Japan to buy oil from Russia. Moreover, Japan are preparing for paying according to market price, which is higher than sport price paid by China. But, Japanese still consider that that will be beneficial for them. Reduce time and transportation greatly. Because of 85% of Japanese oil is imported from the Persian Gulf at present.
The expert said, “Hydrocarbons imported by Japan mainly comes from the Middle East where political unrests and security issues exist. The Middle East is a region which has the risks of exploding. Moreover, importing hydrocarbons needs to cross almost half of the world, having the risks such as pirates. Transport route also crosses through the region in the East China Sea where China has dispute with Japan.
However, Russia is a neighbor. Tankers spend only 2 to 3 days reaching to Japan from Sakhalin. Building gas pipe under Japan Sea is a groundbreaking decision. Through the pipe, Japan can receive gas directly, instead of LNG.
After Fukushima Daiichi nuclear disaster in 2011, nuclear energy development in Japan was stopped. To develop industry and meet the daily demands, Japanese have to increase purchases of oil and gas. The Russian Far East region can meet Japanese demands easily.   
Japan Plans to Build Undersea Gas Pipe
Sep 23,2016
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