According to Shigeru Muraki, Tokyo Gas' General Manager for Gas Resources Development, "We studied the possibilities of both LNG and pipeline supply and found that LNG would be extremely competitive because of the short transportation distance and our past experience. For the future, we are studying pipeline gas, but for now we decided on LNG."

He added, "Asia's thriving energy demand will present viable markets for producers on Russia's Sakhalin Island, although buyers are more likely to prefer liquefied natural gas (LNG) to pipeline products in the medium term. For the region as a whole, LNG will continue to play a major role but I expect that pipeline gas supply will also emerge in the next 10 to 15 years. The consensus has been… LNG first and pipeline later."

Muraki also pointed out the various problems associated with pipeline gas - like limited supply source diversity and storage demand fluctuations - but he was confident that - after a while - both "pipeline gas and LNG will compete in the beginning for some years, they will complement each other to supply the region."

He was speaking at an energy conference in Sakhalin.