Japan intends to focus on supporting the participation of Japanese companies in projects to expand LNG production in order to secure additional supplies as soon as possible, Minister of Economy, Trade and Industry Koichi Hagiuda said April 15, as the country intensifies its efforts to reduce energy dependence on Russia.
“We intend to support Japanese companies to increase their investment in exploration and increase LNG production through measures such as the provision of risk money from Jogmec (Japan National Oil, Gas and Metals Corporation), mainly to expand existing LNG projects, which can produce additional LNG in a relatively short time,” Hagiuda said at a press conference on Friday.
Hagiuda's comments come as several LNG expansion projects are being planned in the US, Australia and Qatar, and after Japan said it would consider ways to increase government involvement in LNG purchases as part of an emergency response to energy security concerns after the Russian invasion of Ukraine.
“In addition to such efforts, we will also immediately begin to study what additional measures will be required, taking into account the current state of the electricity and gas markets, as well as LNG purchases by companies,” Hagiuda said.
Japanese Prime Minister Fumio Kishida said April 8 that the country will introduce a phased ban on coal imports as part of additional sanctions against Russia following the latest commitment from G7 leaders, marking the country's first commitment to restrict any imports of goods from Russia.
The G7 countries are seeking to accelerate efforts to reduce dependence on Russian energy, including phasing out and banning Russian coal imports and reducing dependence on Russian oil, the leaders said in a joint statement on April 7.
According to the Ministry of Finance of Japan, Russia was the second largest supplier of thermal coal and the third largest supplier of coking coal to the country in 2021, when it supplied 12% and 8% of the country's total imports of thermal coal and coking coal, respectively .
According to government data, Russia accounted for 9% of Japan's total LNG imports of 74.32 million tonnes in 2021, making it the country's fifth-largest supplier.
