Japan seeks to secure long-term liquefied natural gas (LNG) supplies from allies like Australia and the United States amid expiring contracts, including those with Russia, by the early 2030s.
With LNG accounting for a third of Japan’s power generation, JERA, its largest power generator, recently acquired a 15.1% stake in Australia’s Scarborough project. It highlights efforts to ensure reliable long-term supply amid concerns over disruptions from Russia’s actions in Ukraine.
Despite a decrease in imports last year due to increased renewable energy use and nuclear reactor restarts post-Fukushima, Japanese LNG buyers have struck deals in Australia and the U.S., securing 10- to 20-year contracts for over 5 million metric tonnes annually. Political issues like Australia’s carbon emissions rules and U.S. LNG export licence freezes haven’t deterred Japan’s interest in these long-term supplies.
Kyushu Electric Power is exploring investments in U.S. projects despite the licence freeze, emphasising the stability of supply from North America and Australia. Through its participation in the Quadrilateral Security Dialogue and its collaboration with G7 members, Japan’s reliance on allies for energy security has increased as a result of Russia’s actions. Recent sanctions on the Arctic LNG 2 project highlight the importance of securing alternatives to Russian LNG.
