Japan Builds Up Strategic LNG Reserve

Japan, the world’s largest importer of liquefied natural gas (LNG), announced the results of a tender launched by the government of Fumio Kishida to create a strategic reserve of this fuel. It will be the first country in the world to have LNG reserves. The decision, which requires the implementation of a number of innovative technological solutions, was made after the sanctions imposed by the USA on the Russian-Japanese Arctic LNG 2 project banned the export of Russian LNG to Japan.

The first trader chosen by Tokyo is JERA, a state-owned company that will provide the state with an LNG tanker holding an average of 70,000 tons of liquefied natural gas during the winter months. These supplies will cover less than 1.3% of Japan’s monthly needs. After 2022, many international liquefied gas importers, primarily European countries, analyzed the possibility of creating LNG reserves, but never got to the bottom of it due to technical, technological, and financial problems. The reason being is that LNG stock cannot be stored for more than three months.

JERA, a joint venture between state-owned TEPCO and private Chubu Electric, is Japan’s largest trader, with a portfolio estimated at 40 million tons of liquid hydrocarbons per year. Japan’s LNG imports are unparalleled in the world: in 2022, the country purchased 72 million tons of liquefied “blue” fuel abroad.