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Japan Shift LNG Interst from Spot to Term Contracts

LNG

Japanese LNG buyers are seeking more term supply contracts with focus switching from spot and short-term trades while also prioritizing supply flexibility according to Energy Intelligence.

  • LNG demand from the Europe has impacted global flows with the share of US LNG in total Japanese imports down to 5.7% in 2022 from 9.5% in 2021. Australia’s share rose to 42.7% in 2022 from 35.8% in 2021.
  • Inpex and Itochu have signed supply agreements with US developers and Jera, Itochu and Mitsui signed binding term sheets with Oman LNG last year.
  • Two unnamed Japanese companies have signed nonbinding agreements with Energy Transfer, the developer of the US Lake Charles project. In 2021 Jera invested $2.5 billion for a 25.7% stake in Freeport LNG, which is looking at building a fourth train.


Source: Energy Intelligence

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