Japan is in discussions to increase its liquefied natural gas (LNG) purchases fourfold for its emergency reserves, aiming to enhance its energy security. This information comes from Yuya Hasegawa, a senior official in the Ministry of Economy, Trade and Industry (METI), who spoke to Reuters.
From the mid-2020s to late 2020s, Japan plans to secure at least one LNG cargo each month, totaling a minimum of 12 cargoes annually. Currently, the country only purchases about three cargoes of LNG each year for emergencies.
During times when domestic demand for LNG is low, Japan occasionally resells some of its emergency LNG cargoes. If this new purchasing plan is implemented, Japan, the world’s second-largest LNG importer after China, would take a more proactive approach in the LNG market.
Natural gas makes up approximately one-third of Japan’s electricity generation. The country is also focused on restarting its nuclear power plants and increasing its renewable energy capacity. This strategy was highlighted by the new Industry Minister, Yoji Muto, who emphasized that the government will maintain the current energy policy.
“We will maximize the use of renewable energy and restart safe nuclear power as much as possible,” Muto stated. He was appointed by new Prime Minister Shigeru Ishiba.
Japan is reintroducing nuclear power as a crucial energy source, seeking to secure its energy needs amid an ongoing energy crisis that has caused fossil fuel prices to rise sharply. The nation, which imports about 90% of its energy, reversed its nuclear energy policy in late 2022 due to soaring energy costs and record-high LNG prices.
Currently, fossil fuels account for around 70% of Japan’s electricity generation, a situation that conflicts with the country’s net-zero emissions goal.
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