Japanese companies are facing a surplus in LNG stocks as demand for the fuel decreases, prompting them to seek opportunities in regional markets to offload excess supply. With a decrease in LNG imports due to the restart of nuclear plants and the rise of renewable energy, Japan is looking to Asia for new outlets. Tokyo Gas, Marubeni, and Sojitz have announced investments in LNG projects in Vietnam, the Philippines, and Indonesia, respectively.
Japan is involved in over 30 gas-related projects in countries like Bangladesh, India, Indonesia, and Vietnam, aiming to maintain a volume of 100 million tonnes of LNG. As domestic demand for LNG decreases, Japan is looking to increase its trading volume and expand its presence in Asian gas markets.
With the goal of carbon neutrality in mind, Japan continues to navigate the changing landscape of the energy market, balancing its reliance on LNG with investments in renewable energy sources. The future of Japan’s LNG industry remains intertwined with its strategic partnerships and evolving market dynamics.
© REUTERS THOMPSON 2024