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Japanese Utilities to See Impact If US LNG Pause is Long-Term

LNG

Japanese electric utilities will not be affected in the short-term by the US’ pause on new LNG export permits, but may face issues if the halt becomes long-term, according to Reuters.

  • The Biden administration paused approvals for applications to export LNG to review the economic and climate impact of new projects.
  • Kazuhiro Ikebe, chairman of Japan's federation of electric utilities, said that the move will have limited impact on LNG procurement among Japanese companies as projects which already hold permits are unaffected.
  • However, he also warned that a long-term pause would have a major impact on global LNG supply and demand, Reuters reported.
  • Japan is the world’s second-largest LNG importer after China.
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