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Replacing Russian LNG from Sakhalin-2 would cost Japan $15bn

Price tag for imports to jump 35% if Mitsui, Mitsubishi pull out of energy project

A tanker carrying U.S. LNG arrives in Japan. (Photo by Ryosuke Hanafusa)

TOKYO -- Japan could pay one-third more per year for imported liquefied natural gas if it exits the Sakhalin-2 LNG project in Russia, a potentially fateful decision for the energy-poor Asian nation.

Sakhalin-2 in the Russian Far East produces 10 million tons of LNG a year, with roughly 60% of the output going to Japan. This accounts for virtually all of Japan's LNG imports from Russia.

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