Japan Concerned for Delays Due to US LNG Permit Suspension

Japan is concerned that a temporary suspension of US export permits may delay the launch of new LNG facilities according to industry minister Ken Saito. There will however be no impact on LNG procurement by Japanese companies as the measure does not impact existing approvals.

• "Some Japanese companies have already concluded offtake contracts for LNG that is scheduled to receive approval and begin production in the U.S. Therefore, we are concerned that the temporary suspension of export permits will delay the start of new LNG production from the U.S."
• Japan still relies on LNG for a third of its electricity mix despite the recovery of nuclear power generation and renewable energy. US LNG imports increased by 34% last year to 5.5m metric tons, providing 8% of total LNG purchases by Japan in 2023.
• "We would like to carefully examine the medium to long-term impact of the issue and take necessary steps to ensure that Japan's stable energy supply is not compromised," Saito said.