Japan Looks to Expand Strategic LNG Buffer Fourfold: Platts

As part of its strategic buffer, The Japanese government is looking at quadrupling its holding LNG volumes to at least of 840k mtpa by the mid-2020s, a government official told Platts.

• Starting in December, Japan will begin operating "Strategic Buffer LNG" cargoes as a contingency for supply problems. This will start with a minimum of one LNG cargo a month from Dec 2023-Feb 2024.
• “Although this time only covers the winter months of December, January and February, we are looking to secure one cargo every month by the mid-2020s as the mid-to-long term [target]," Yuya Hasegawa, director of the energy resource development division at the Ministry of Economy, Trade and Industry, said.
• Under the plan. JERA will hold one cargo each month until it receives permission to release it. JERA will be compensated if it makes a loss selling the cargo but will have to return any profits.