Japan to slash LNG imports by 2030

Japan to slash LNG imports by 2030

Japan’s Ministry of Economy, Trade and Industry revealed that the country plans to cut its dependence on fossil fuels in its energy mix which would result in the decrease of LNG imports. 

Speaking at an LNG conference in Tokyo, Satoshi Kusakabe,  commissioner of METI’s Natural Resources and Energy Agency revealed that LNG imports will drop to 63 mtpa by 2030 from current 90 mtpa while fossil fuels share in Japan’s energy mix will drop from 90% to 75%.

Platts cites Kusakabe saying that despite the drop in LNG imports by a third, Japan would still remain the world’s largest importer.

He expects a creation of a competitive energy market in Japan due to domestic gas and electricity markets deregulation. He added that this could accelerate changes ways of LNG procurement and urge formation of alliances between Japanese companies as well as cooperations with foreign companies.

Kusakabe urged for cooperation between governments, LNG consumers and producers in order to secure the supply of the chilled gas, stressing the need for flexible LNG contracts, especially when it comes to destination clauses.

He stressed that easing the destination clause is one of the key factors to development of the LNG market together with increased liquidity, spot trade and more LNG players.

Japan is targeting to cut LNG’s share in the energy mix to 18%  for fiscal 2030-2031 from current 25% in FY 2013-2014.

 

LNG World News Staff; Image: NYK

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