JERA seeks more LNG to hedge growing Middle East risk
JERA, Japan's largest liquefied gas buyer, has begun discussions with global suppliers about possible additional purchases to protect against Middle East supplies worsening. This is despite a major LNG supplier saying the price spike would be short-lived. The U.S./Israeli war against Iran has caused the QatarEnergy LNG plants to be shut down, which has disrupted energy supplies in the Middle East. Qatari Energy minister Saad Al-Kaabi stated last week that it could take several months for normal deliveries to resume.
Minister: Qatar LNG stoppage won't affect Japan's energy supplies immediately
Qatar's LNG production halt caused by Iranian strikes won't affect Japan's supply of energy immediately. If there is an impact, Japan can tap the spot market, or utilities can buy from one another, said Trade Minister Yosei Acazawa on Tuesday. Akazawa said at a regular news conference that Qatari LNG accounts for 4% (of Japan's total LNG) imports. He also reiterated that the government has no plans to release any oil from its stockpiles while Japan bound ships are stuck in the Middle East. According to the Japanese government, companies in the country have enough LNG to last about three weeks.
Toda begins commercial operation of Japan’s first floating windfarm
Toda Construction announced on Monday that their consortium had started 'commercial operations' at the Goto offshore?wind?farm located in Nagasaki,?southern?Japan. This marks the country’s first commercial floating?wind project. The floating wind farm, which has a capacity of 16.8 megawatts (MW), is the first facility to be certified by a new law enacted by the land and industry ministries to promote the sector. Japan wants to increase its renewable energy capacity in order to meet the 2050 goal to become carbon neutral.
Japan tightens regulations on mega-solar project to protect landscape and nature
Officials from the Japanese government have announced that they will tighten regulations, and stop financial support for large-scale projects of solar energy to protect the?environment and preserve landscapes. This is part of the package of countermeasures against mega-scale solar farms that was endorsed by the Japanese government on Tuesday. It also aligns with Prime Minster Takaichi, who has called for limits to large solar projects. She argued that most panels are manufactured overseas, particularly in China, and mega-solar farms risk damaging Japan's natural environment and scenery.
Japan's JERA receives government subsidy on US ammonia imports
JERA, Japan's largest power generator, has received a 15-year government subsidy to cover the?difference between coal and ammonia prices. It aims to import ammonia to its planned U.S. The government has agreed to provide a subsidy for 15 years, covering the?difference between ammonia and coal prices. JERA aims to import ammonia from its planned?U.S. plant in 2029. JERA, CF Industries, and Mitsui Trading formed a joint-venture in April to build the Blue Point Project, one of the largest ammonia plants with low carbon emissions in the world. The project is estimated to cost $4 billion.
Executives say that Japanese utilities could find a replacement for Sakhalin-2 in the event of LNG supply interruption.
Executives said that Japanese utilities JERA, Tohoku Electric Power Co and Sakhalin-2 can find alternative sources of gas if the flow is interrupted. This comes amid U.S. demands to stop energy imports from Russia. This month, the U.S. urged Japan and other Russian energy consumers to stop imports as they push the Kremlin toward ending the Ukraine war. Japan's contracts with Sakhalin-2, which are long-term agreements, cover approximately 9% of its imports of LNG. JERA receives about 2 million tonnes of LNG each year under two contracts that expire in 2026 or 2029. JERA is a major LNG trader.
Tokyo Gas CEO: US is priority market for overseas expansion, Tokyo Gas.
Tokyo Gas will prioritize the U.S. for its overseas expansion because of its high growth potential, CEO Shinichi SASAYAMA said on Wednesday. Japan's biggest city gas provider is looking at a possible offtake of gas from Alaska. Tokyo Gas, Japan's largest buyer of liquefied gas, and JERA (Japan's second-largest LNG buyer) have signed agreements to purchase 1 million metric tonnes of LNG each annually from the $44 billion Alaskan LNG project, which is supported by U.S. president Donald Trump. Sasayama…
Japan chooses two promising offshore wind farm areas
The Japanese government announced on Friday that it has designated two sites offshore of the prefectures of Akita (Akita) and Fukuoka (Fukuoka) as "promising areas" for developing off-shore wind farms. The Japanese government wants to speed up the development of renewable energy to achieve carbon neutrality in 2050. However, the recent withdrawal by a consortium led to by Mitsubishi Corp from the first major offshore wind auction has shaken confidence. Akita City in the north of Japan and Hibikinada, in Fukuoka to the south are now designated zones.
Trump signss order to lower Japanese auto tariffs
On Thursday, U.S. president Donald Trump signed an executive order to lower tariffs announced in July on Japanese auto imports and other products. Seven days after the publication of the order, lower auto tariffs will come into effect. The tariff relief extends back to August 7, in part. Trump's order will also result in a reduction of the U.S. Tariff rate on Japanese vehicles, from 27.5% down to 15%. This is expected to be implemented by the end this month. In Trump's order, Japan "is working toward an expedited implementation" of a 75% rise in United States rice purchases...
Japan protests new Chinese structures in East China Sea
The Japanese Foreign Ministry said that China had begun building a new structure between China and Japan, in the disputed East China Sea. It also added that it had lodged a formal protest with China. In a press release, the ministry stated that "it is regrettable" for China to continue with its unilateral development while the exclusive economic zones and continental shelf of the East China Sea are still not defined. The Japanese government also requested that China stop its unilateral development…
Japan protests new Chinese structures in East China Sea
The Chinese government has begun the construction of a new structure in the East China Sea on the western side of the geographic equidistance of Japan and China, according to the Japanese Foreign Ministry. It also said that it had lodged a formal protest with China. In a press release, the ministry stated that it was "extremely regrettable" for China to continue with its unilateral development while the exclusive economic zones and continental shelf of the East China Sea are still not delimited.
Siemens Gamesa and Japan's Industry Ministry agree to wind power cooperation
A ministry official announced that the Japan's Industry Ministry will sign an agreement on Tuesday with Siemens Gamesa Renewable Energy to create a framework of public-private collaboration aimed at creating local supply chains for offshore power. The official in charge of wind power at the Ministry of Economy, Trade and Industry told reporters that the government is promoting collaborations with international players to create a domestic supply network. The official stated that as part of these initiatives…
Taiyo Oil Buys First Russian Crude In More Than Two Years
Japanese refinery Taiyo Oil has bought its first Sakhalin Blend crude from Russia in more than two years at the Japanese government's request, it said on Tuesday, to help ensure the stability of a plant also supplying Japan with liquefied natural gas.Japan last imported Russian crude in February 2023, trade data showed, after Tokyo agreed with other G7 countries to phase out imports in response to Moscow's 2022 invasion of Ukraine.China has since been the sole importer of Sakhalin Blend, but sanctions imposed by the former Biden administration in January on ice class tankers…
Japan's Gas Industry Allows Gas with Carbon Capture in 2050 Net Zero Plan
The Japan Gas Association announced on Tuesday that it will take a more flexible stance in its efforts to become carbon neutral in 2050. This includes allowing a greater use of gas, in conjunction with carbon capture and other decarbonisation methods. The industry group stated that it aimed to supply 50-90% by 2050 of its gas from biogas or e-methane, with 10-50% coming from natural gas and carbon capture. The group, including city gas suppliers had originally set an initial target of 90% e-methane produced from green hydrogen, CO2, and 5% biogas by 2050.
NextDecade, JERA Sign 20-Year LNG Supply Deal
U.S. liquefied natural gas producer NextDecade said on Thursday it had signed a 20-year deal to supply Japan's biggest power generator JERA with 2 million tonnes per annum of LNG from its Rio Grande project's fifth liquefaction facility.Shares of NextDecade were up 5.5% at $8.11 in early trading.The United States is the world's largest exporter of LNG, shipping 11.9 billion cubic feet per day of the supercooled fuel in 2024, and has gained further momentum following President Donald Trump's lifting in January of a moratorium on new export permits.NextDecade's deal with JERA…
Mitsui OSK To Asses EU Sanction Impact On Its LNG Vessels
Japan's second-largest shipping company Mitsui O.S.K. Lines (MOL) said it is carefully assessing the impact on three of its liquefied natural gas vessels of new sanctions imposed by the European Union against Russia."We will continue to fully cooperate with the relevant authorities, including the European Union and the Japanese government, and remain committed to complying with all applicable laws, regulations, and international rules," said a company spokesperson on Wednesday."We will take appropriate measures as necessary…
CF Industries and JERA Mitsui form a joint venture to build a $4 billion ammonia plant with low carbon emissions
CF Industries announced on Tuesday that it had formed a joint-venture with Japan's biggest power generator, JERA and trading house Mitsui & Co. to build one the world's most massive low-carbon ammonia plants for around $4 billion. Why is it important? The largest climate change legislation passed in the U.S. in history by former President Joe Biden in 2022 was meant to spark a boom in American energy development, including low-carbon emissions products. Ammonia manufacturer CF Industries has said…
Japan Gas Industry Head: Higher US LNG Imports Must be Mutually Beneficial
The head of Japan's Gas Industry Group said that higher imports of U.S. Liquefied Natural Gas would improve Japan's energy security and supply stability. However, they must be pursued on a mutually-beneficial basis for both parties. U.S. president Donald Trump pushes energy sales to Asian allies, while threatening tariffs on trade. This is reviving Alaska LNG's stagnated LNG ambitions. Last month, Japanese Prime Minister Shigeru Ishiba met with Trump and discussed the 20-million-tons-per-year Alaska LNG project…
Japan adopts new policies on energy, climate and industry through 2040
The Japanese government approved new targets on Tuesday to reduce the country's emissions of greenhouse gases through 2040. It also approved a revised energy policy and updated industrial policies for the same time period. The measures are aimed at enhancing long-term stability of policy for businesses. They focus on decarbonisation and ensuring stable energy supplies, as well as strengthening industrial capacities to drive economic growth. Japan's new climate policy aims to cut greenhouse gas emissions from 2013 levels by 60% by 2035, and 73% by 2020, exceeding its previous 2030 target of a 46% reduction.
Japan selects two groups to participate in the third round of offshore wind power
In a third round of major public auctions, the Japan's land and industry ministries selected, on Tuesday, two consortiums as operators for offshore wind blocks, including one that included energy giant BP. Analysts in the industry said that domestic and international companies were watching closely to see how this round of competition, held under a new law encouraging wind power development, would affect their exposure to renewable energy. As part of its decarbonisation plan, Japan wants to accelerate the development of offshore wind farms.