Sakhalin-1 crucial for Japan energy security, METI says, as US sanctions Russian shareholder

By Katya Golubkova

TOKYO, Nov 7 (Reuters) - Japan's industry ministry said Friday that foreign projects, including Russia's Sakhalin-1, remain critical to the country's energy security, following new U.S. sanctions on Rosneft ROSN.MM, a key shareholder alongside Japanese partners.

Last month, Washington sanctioned Russia's Rosneft and Lukoil LKOH.MM in the most recent step to force the Kremlin to end the war in Ukraine. The U.S. will allow operations with the two to wind down until November 21.

Before Tokyo halted imports of Russian crude in February 2023 — following Moscow's invasion of Ukraine the year before — Russian supplies partly offset Japan's more than 90% reliance on Middle East oil.

"The Ministry of Economy, Trade and Industry will continue to recognise the importance of the Sakhalin-1 project and will take all necessary measures to ensure that Japan's energy security is not adversely affected," METI said on Friday in response to a question about the sanctions on Rosneft.

ExxonMobil XOM.N, which used to own a 30% stake in Sakhalin-1, left Russia in 2022.

Before Exxon's exit, Rosneft and India's ONGC Videsh ONVI.NS owned a 20% stake in the project each and another 30% was controlled by the SODECO consortium involving METI, Marubeni 8002.T, Itochu 8001.T, Japan Petroleum Exploration 1662.T and Inpex 1605.T.

Reuters reported earlier on Friday that Japan, the world's No.2 LNG importer, plans to buy liquefied natural gas for emergency reserves on a monthly basis from January, versus buying only during peak demand periods, to guard against supply shocks.

While not directly linked, an increase in emergency LNG purchases would help to manage supply shocks such as possible interruptions from the Sakhalin-2 LNG project, as the U.S. has urged Japan and other allies to stop imports of Russian energy as part of efforts to pressure Moscow to end its war in Ukraine.