Amid growing concerns over energy supply due to the ongoing Russia-Ukraine war and escalating conflict in the Middle East, the Japanese government announced its plan to sign a memorandum of understanding with Italian energy company Eni for liquefied natural gas (LNG) purchases during emergencies. Japan will work with the Italian government to secure LNG from Eni through the Japan Organization for Metals and Energy Security, with details such as volume and price yet to be finalized.
In exchange for the LNG agreement, Eni is seeking support from Japanese companies for an LNG project in Mozambique. Following the 2011 Fukushima nuclear crisis, Japan increased LNG imports to compensate for the lack of nuclear power. With LNG prices surging after Russia’s invasion of Ukraine and tensions in the Middle East, Japan is taking proactive steps to secure its energy resources.
As concerns mount over the situation in the Middle East, particularly Iran’s recent actions, the potential disruption of LNG supply routes like the Strait of Hormuz poses a significant threat to Japan’s energy security. While Australia and Malaysia currently dominate Japan’s LNG imports, any disturbances in the Middle East could impact procurement and prices, affecting Japan’s resource-poor economy.
© KYODO
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