NHK has learned Japan is considering providing assistance to companies signing long-term import deals for liquefied natural gas. This comes as the government tries to secure a stable supply of LNG with energy security becoming a major global issue.
LNG thermal power accounts for about 30 percent of total electricity generated in Japan. A surge in costs following Russia’s invasion of Ukraine has led to a hike in utility bills.
The trade and industry ministry expects LNG to remain an important source of energy despite decarbonization efforts around the world. It believes procuring a supply at stable prices is a necessity.
The ministry will begin discussing measures to make it easier for companies to seal supply agreements that are 10 years or longer. This includes ways to limit risk from unexpected drops in demand. The ministry may offer the firms financial aid packages to secure storage tanks in Japan and abroad, and launch a framework to help them resell LNG.