Oil & Gas

Japan is seeking help from Western allies to secure LNG contracts beyond 2030, as the risks of relying on Russia for supplies have become apparent since the Ukraine invasion. With a decrease in LNG purchases from Russia, Malaysia, Indonesia, and Qatar in recent years, Japan aims to diversify its LNG sources.

To reduce energy ties with Russia, Japan is turning to allies for LNG needs. Mitsui and Co.for instance, withdrew from Russia's Arctic LNG 2 project but will maintain its stake. Japan is also seeking LNG from the United States, Australia, and Canada, with plans to increase long-term supplies from friendly nations.

While Japan's overall LNG imports are declining due to nuclear reactor restarts, it still relies on long-term contracts. Japan's top LNG supplier is Australia, with increasing imports, while Qatar's share has decreased. Japan is also increasing imports from the United States.

Despite a short-term surplus, Japan is securing long-term LNG supplies and plans to establish an emergency LNG reserve system.