Japan remains reliant on LNG
The Japanese Ministry of Finance has released data showing that the nation is still reliant on liquefied natural gas, with both volume and price increasing in recent years.
In January this year, Japan imported 8.3 million tons of LNG, an increase of 1.06 million tons compared to January 2016. The cost has also increased by 6.7 percent since 2015.
Japan is one of the largest LNG importers in the world and it is expected that it will continue to be a key energy source for the country in the future. The closure of its nuclear reactors in 2011 led to a reliance on LNG, and need has increased ever since.
While Japan, as per the Paris Agreement, is joining many other nations in increasing its green energy usage, analyst Eclipse believes Japan’s LNG requirements could reach 77 million tons by 2020.
Koichi Wada, Division COO, Natural Gas Business Division, Mitsubishi Corporation stated: “Natural gas has an advantage from environmental and supply-diversification perspectives and could compensate if the targets of other fuels are not achieved. In this context, we see that natural gas could potentially have a higher share in the mix target of 2030 and the trend might continue until 2040.”
Gavin Sutcliffe, Head of Content at Gastech, added: “As a signatory of the Paris Agreement, Japan needs to quickly reprioritise its energy policy. Whilst the nation’s energy sector has remained largely unchanged over the past few decades, we are expecting to see significant shifts in the composition of the country’s energy mix in the near future, with a market preference for LNG and gas.”