Japan’s Government plans to propose a global liquid natural gas (LNG) reserve in an effort to avoid future shortages and help stabilise energy prices.
According to reports, the government will suggest to the International Energy Agency (IEA) a framework for global gas stockpiling for member nations. Proposals will be presented at the LNG Producer-Consumer Conference, due to be held in Tokyo on Tuesday, according to anonymous sources.
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The conference is the world’s largest LNG-related international conference and will see leaders from both gas-producing and consuming countries gather to discuss the future of LNG markets. Japan’s trade ministry is co-organising the conference with the IEA.
The IEA already requires member nations, which include Japan and other major economies such as the US, to have emergency reserves of oil equivalent with a supply of at least 90 days. Japan’s proposals suggest a similar framework for natural gas.
Japan’s Government also hopes for its proposals to be on the agenda at the IEA’s 2024 Ministerial meeting, due to be held in Paris next February. The meeting will see energy ministers from member states assess the latest developments in global energy markets, as well as discuss ways to cooperate on energy security and climate change mitigation.
Global gas markets were severely disrupted after Russia’s invasion of Ukraine in February last year, which saw sanctions placed on Russian oil and oil products and a significant shift away from Russian gas supply. In May, G7 leaders and EU ministers moved to extend formal sanctions to Russian gas imports on routes where Russia had cut supplies.
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By GlobalDataThe resulting energy crisis has caused a shift in focus by governments and companies towards energy security. This has resulted in a doubling-down on fossil fuel production in efforts to secure steady supply, driven by record profits for oil companies last year, despite warnings from the IEA that oil and gas expansion must cease immediately to limit the worst impacts of the climate crisis.
