Japan is improving its liquefied natural gas (LNG) purchasing strategy by working with South Korea and Italy, report says Reuters.
The move is aimed at increasing flexibility and strengthening energy security for the country, which is one of the largest importers of super-chilled gas.
Japanese utility JERA and Korea Gas of South Korea, a major LNG buyer, are exploring joint purchasing and freight swaps, according to Japan’s Ministry of Economy, Trade and Industry (METI).
A statement co-signed by South Korea’s Ministry of Trade, Industry and Energy said: “The governments of both countries expect this endeavor to serve as a starting point for new LNG cooperation between Korean and Japanese companies.”
In a separate initiative, the state-backed Japan Metals and Energy Security Organization (JOGMEC) signed a preliminary agreement with Italian energy company Eni.
This collaboration aims to strengthen LNG procurement and potentially involve Japanese financial institutions in Eni’s LNG projects, such as the Coral North project in Mozambique.
Cristian Signoretto, Eni’s director for the global gas and LNG portfolio, told reporters on the sidelines of an LNG conference in Japan: “We are already dealing with Japanese buyers in the short term and we would also like that cooperation extend to a long term. -term basis.”
Japanese companies are increasingly looking for flexible LNG contracts that offer shorter terms and resale options, allowing them to divert cargoes in response to fluctuating domestic demand.
This shift is part of Japan’s broader strategy to expand its LNG trading activities within the region.
Tokyo Gas, a city gas supplier, has been active participate in joint LNG purchasingthereby increasing emergency response capabilities.
As part of its strategy to ensure reliable supplies, JERA has been tasked by the Japanese government to secure approximately 70,000 tons of LNG monthly from December to February.
This tender aims to prepare for the heating season and contributes to the country’s strategic LNG buffer (SBL).
METI Division Director Yuya Hasegawa confirmed Japan’s aim to prepare loads for the SBL for the coming heating season as well.
“Japan Boosts LNG Strategy Through Cooperation with South Korea and Italy” was originally created and published by Offshore technologya brand owned by GlobalData.
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