Russia and Japan are moving closer to building a liquefied natural gas plant on Russia's Pacific Coast, state gas firm OAO Gazprom said Wednesday, following a meeting between the company's management and Japanese officials in Moscow. The two countries are preparing an investment plan for construction of an export terminal near the Russian city of Vladivostok to ship either liquefied natural gas or compressed natural gas, Gazprom said
Russia and Japan are moving closer to building a liquefied natural gas plant on Russia's Pacific Coast, state gas firm OAO Gazprom  said Wednesday, following a meeting between the company's management and Japanese officials in Moscow.

The two countries are preparing an investment plan for construction of an export terminal near the Russian city of Vladivostok to ship either liquefied natural gas or compressed natural gas, Gazprom said.

As Japan seeks to reduce its dependence on LNG imports from Indonesia--currently its largest supplier--government officials and company executives have intensified talks with Russian counterparts. Earlier this month, the two countries signed a preliminary agreement to build a gas export terminal near Vladivostok.

Japan currently imports shipments of liquefied natural gas, or LNG, from the Sakhalin-2 project, Russia's only LNG plant, in which Mitsui & Co. (8031.TO) and Mitsubishi Corp. (8058.TO) are shareholders.

Russia is building a 1300 kilometer pipeline from Sakhalin to Vladivostok, planned to be completed by the end of 2011.