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LNG: Japan's Nuclear and Renewable Shortfalls to Boost LNG Role: OIES

LNG
Energy BulletsBulletAPACJapanCommodities

Shortfalls in the Japan’s nuclear and renewable sectors will elevate the role of LNG to balance energy supply security with decarbonization, OIES said.

  • The long-term role for LNG keeps Japan reliant on imported energy, global LNG market dynamics and price volatility.
  • Japan needs to remain flexible to balance immediate energy security with long-term sustainability and climate commitments.
  • The role of LNG and renewables is critical in the near term, while the future of nuclear power expansion remains uncertain.
  • Nuclear restarts this year could cut LNG imports by 5.3mtpa and could potentially result in a further fall of 12.5mtpa. However, nuclear restart delays and government subsidies for gas and electricity consumers could temporarily boost city gas and power sectors gas demand.
  • The draft 7th Strategic Energy Plan aims to reduce fossil fuel usage to between 30%-40% of the power generation mix but lacks detailed fossil-fired power breakdowns.
  • About 40 per cent of Japan's long-term LNG contracts are projected to retain destination clauses until 203 despite the global trend towards destination-free contracts.
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Shortfalls in the Japan’s nuclear and renewable sectors will elevate the role of LNG to balance energy supply security with decarbonization, OIES said.

  • The long-term role for LNG keeps Japan reliant on imported energy, global LNG market dynamics and price volatility.
  • Japan needs to remain flexible to balance immediate energy security with long-term sustainability and climate commitments.
  • The role of LNG and renewables is critical in the near term, while the future of nuclear power expansion remains uncertain.
  • Nuclear restarts this year could cut LNG imports by 5.3mtpa and could potentially result in a further fall of 12.5mtpa. However, nuclear restart delays and government subsidies for gas and electricity consumers could temporarily boost city gas and power sectors gas demand.
  • The draft 7th Strategic Energy Plan aims to reduce fossil fuel usage to between 30%-40% of the power generation mix but lacks detailed fossil-fired power breakdowns.
  • About 40 per cent of Japan's long-term LNG contracts are projected to retain destination clauses until 203 despite the global trend towards destination-free contracts.