Japan is enhancing its liquefied natural gas (LNG) procurement strategy by collaborating with South Korea and Italy, reported Reuters.
The move aims to increase flexibility and strengthen energy security for the nation, which is one of the biggest importers of the super chilled gas.
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According to Japan’s Ministry of Economy, Trade and Industry (METI), Japanese utility major JERA and Korea Gas from South Korea, a key LNG buyer, are exploring joint procurement and cargo swaps.
A statement co-signed by the South Korean Ministry of Trade, Industry and Energy read: “The governments of both countries expect that this endeavour will serve as the starting point for a new LNG cooperation between Korean and Japanese companies.”
In a separate initiative, the state-backed Japan Organization for Metals and Energy Security (JOGMEC) has signed a preliminary agreement with Italian energy company Eni.
This collaboration is intended to bolster LNG procurement and potentially involve Japanese financial institutions in Eni’s LNG projects, such as the Coral North project in Mozambique.
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By GlobalDataSpeaking to reporters on the sidelines of an LNG conference in Japan, Eni director for global gas and LNG portfolio Cristian Signoretto said: “We already deal with Japanese buyers on a short-term basis and we would like to expand that collaboration also to a long-term basis.”
Japanese companies are increasingly seeking flexible LNG contracts that offer shorter durations and resale options, allowing them to redirect 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 provider, has been actively engaging in joint LNG procurement, enhancing its emergency response capabilities.
As part of its strategy to ensure a reliable supply, JERA has been tasked by the Japanese Government with securing approximately 70,000 tonnes of LNG monthly from December to February.
This procurement is to prepare for the heating season and contribute to the country’s strategic LNG buffer (SBL).
METI division director Yuya Hasegawa confirmed Japan’s goal of preparing cargoes for the SBL for the upcoming heating season as well.
