Japan Pipeline Development & Operation,Inc.(JPDO) Company Profile Project Outlines History Contact Information Home  
     


Greetings

Hideo Ogawa President Japan Pipeline Development & Operation Inc.

Japan Pipeline Development & Operation (JPDO) was founded in 1998 as a business venture to complete and put to commercial use a natural gas pipeline project from Sakhalin to Japan that had been underway since 1974. Since then, we have continued to make progress toward implementation of the project, overcoming various difficulties on both the Japanese and the Russian side with the support of the many domestic and international parties concerned.

It has been expected that the direct transportation of natural gas by pipeline to users in Japan from Sakhalin in neighboring Russia, a country with abundant energy resource reserves, will greatly contribute to Japan’s energy security, providing a new source of clean and cost competitive energy that will not only benefit industry but improve the lives of the people in Japan.

The project aims to insure for many years to come a stable supply of the energy essential for Japan and its people. Surveys and analyses conducted by experts both in and outside the country have confirmed the high economic feasibility of the project. The securing of a supply of natural gas from the source, the low-cost pipeline transportation and the numbers of energy-hungry customers would ensure the economic viability of the project.

This international trunk pipeline directly linking Japan to gas fields in Sakhalin is the final key piece of infrastructure to be developed in Japan. As the list of supporters both in and outside of Japan continues to grow, we, in conjunction with our Russian counterparts, are busy preparing the environment for the implementation of the project and drawing up the necessary plans to begin implementing the project as soon as possible.

The great earthquake that hit east Japan on March 11, 2011 brought grave consequences for one nuclear power plant there, forcing us to fundamentally rethink our energy policy, in which nuclear power generation had been promoted. It is necessary to expand the use of natural gas to make up for the loss of nuclear power capacity, since it is the cleanest of all fossil fuels, as you know.

In addition, in order to reconstruct the devastated Tohoku area as well, we are now required to create new key industries by giving priority to the area in developing key infrastructure including low-cost pipeline gas power plants to make up for the loss of the nuclear power plant, and to create vibrant local communities by revitalizing regional industry and economy as well as employment.

In this context, the Japan-Russia pipeline project has been re-evaluated and, after examining possible ways to develop the basic infrastructure from Sakhalin down through Hokkaido and the Tohoku and Kanto regions of eastern Japan, we have confirmed its economic and technical feasibility.

We are now aiming to implement the Japan-Russia Natural Gas Pipeline Project as soon as possible to contribute to a number of national policies currently of vital importance to Japan: making up for the loss of nuclear power generation, speeding the recovery of the disaster areas, reducing the price of LNG, diversifying and distributing energy sources, developing an extensive nationwide natural gas pipeline, expanding renewable energy, developing new industries and economies, and promoting economic development mutually beneficial to both Japan and Russia.

On the occasion of this new historic turning point facing Japan, we will strive to build the full-scale project implementation system and implement the project as soon as possible, in order to develop and operate this vital new infrastructure as well as to create related industries, while seeking cooperation with the existing energy industry and related businesses as well, with the aim of developing steadily as a new private utility service provider. We would appreciate your continued understanding and support.

 

Company Outline

Corporate Name
Japan Pipeline Development & Operation Inc. (JPDO)
Location
1-5, Kita 4 Nishi 7 Chuo-ku Sapporo 060-0004 Japan
Phone: +81-11-272-6529 FAX: +81-11-272-6299 (outside of Japan)

Founded
December 8, 1998
Purpose
Japan-Russia Natural Gas Pipeline Project together with related businesses and services

Business Concept

(1) Contribution to the energy policy
●Contribution to the policy of reducing the cost of importing gas
●Contribution to the policy of energy security
●Contribution to the policy of securing alternate power sources due to the loss of nuclear power generation
●Contribution to the policy of developing an extensive nationwide natural gas pipeline
●Contribution to the policy of expanding renewable energy
●Contribution to the policy of expanding distributed energy including cogeneration
(2) Contribution to related policies
●Contribution to the policy of developing new industries and economies
●Contribution to the policy of speeding the recovery of the disaster areas damaged by the Great East Japan Earthquake
●Contribution to the policy of strengthening national land and developing new infrastructure
●Contribution to the policy of revitalizing local economy and employment
●Contribution to the policy of reducing harmful emissions
●Contribution to the policy of promoting mutually-beneficial economic development of both Japan and Russia

Main Services
(Direct & Related)

●Gas transportation service (low-cost transportation directly linking the gas field to the destination of demand)
●Gas sales (low-cost gas supply by low-lost transportation)
●Gas power generation (low-cost gas supply for existing power plants, new power plants and distributed power generation)
●City gas service (low-cost gas supply for existing gas and new city gas services)
●Compressed gas service (CNG for transportation including natural gas vehicles)
●Gas chemicals (in the fields possible to secure the market)
●Information and communications service (use of optical fiber installed along the pipeline)
●Other related services (high-degree application in each area along the periphery of the pipeline)

Business Features

●Introduction of natural gas via pipeline from gas fields in the Russian Far East including Sakhalin 3
●Development of an international joint project implementation system based on cooperation between Japan and Russia.
●Construction of Japan’s first international natural gas pipeline
●Expansion of an extensive nationwide natural gas pipeline to cover eastern Japan
●Development of a system for cooperation with the electric power company to make up for the loss of nuclear power generation
●Establishment of a system for coordination with LNG to reduce procurement costs and to connect with receiving bases
●Development of a system for coordination with renewable energy and cogeneration
●Creation of new large-scale basic infrastructure and large-scale key industries

Shareholder Composition

Within a basic framework comprising the Japanese consortium and Russian companies, related companies from the USA, Europe, Asia and Australia are in the process of joining the project in the form of an international joint venture.

Representative

Hideo Ogawa, Representative Director and President