Japan wants to give partners of state entities more flexibility to secure LNG supplies

The industry ministry announced on Tuesday that Japanese companies would be able to exercise more control over JOGMEC-backed liquefied gas joint ventures and also recover their investment faster.

At a meeting of the committee on fuel and resource policy, the Ministry of Economy, Trade and Industry announced that it would take steps to encourage Japanese firms to invest in LNG projects.

METI has stated that it aims to implement a'mechanism that prioritizes dividend payments to joint investment vehicles, with the 'Japan Organization of Metals and Energy Security. (JOGMEC) allowing companies to recover their investments in LNG projects earlier that have reached the production stage.

The new framework allows companies to buy stakes in JOGMEC if they want to divest from the state-backed entity so that it can be more proactive with management.

As geopolitical risk increases, the measures aim to encourage greater corporate investment into?LNG project to secure long-term supply of super-chilled fuel.

Japan is the second-largest LNG buyer in the world after China. A boom in artificial intelligence and rising costs of renewable energy, as well as a new energy plan, are driving the appetite for long-term LNG contracts. (Reporting and editing by Muralikumar Aantharaman; Reporting by Yuka?Obayashi)

(source: Reuters)