Japan’s Taiyo Oil Turns to Russia’s Sakhalin-2 for Crude Amid Iran War
Japan’s Taiyo Oil secures crude from Russia’s Sakhalin-2 project as the Iran war disrupts Gulf supply and forces refiners to seek alternative sources.
(Reuters) — Japanese refinery Taiyo Oil is to receive a cargo of crude oil from Russia's Sakhalin-2 project next week, the company said on May 2, as the country seeks alternative sources of petroleum after the U.S.-Israeli war with Iran limited supplies from the Gulf.
Japan has largely suspended purchases of oil from Russia after Moscow's invasion of Ukraine in 2022. A U.S. exemption for oil sales from the Sakhalin-2 project, which largely produces the liquefied natural gas, runs until June 18.
Taiyo Oil has purchased a crude oil cargo from the Sakhalin-2 project in Russia's far east and which is set to arrive at the Ehime Prefecture in western Japan on May 4, the company said by email.
Taiyo Oil declined to comment on possible future purchases from the Sakhalin-2 project. Last year, it bought its first Sakhalin Blend crude from Russia in more than two years at the Japanese government's request.
The Mainichi daily first reported the news on Saturday, citing Japan's Ministry of Economy, Trade and Industry. The ministry was not available for a comment outside of the working hours.
The move comes as Japan seeks to secure alternative oil supplies after the U.S.-Israeli war with Iran has largely cut off imports from the Gulf, Tokyo's main oil source before the Middle East conflict broke out in late February.
Japan has also secured supplies from the U.S. and from destinations bypassing the largely closed Strait of Hormuz, among other sources.
Russian state gas company Gazprom is a controlling shareholder in the Sakhalin-2 oil and gas project, in which Japanese trading houses Mitsui and Mitsubishi also hold stakes.