Japan Mulls System to Order Major Firms to Curb Gas Consumption

Politics Economy

Tokyo, July 12 (Jiji Press)--Japan's industry ministry has started considering the introduction of a system to order major companies to curb consumption of city gas if the supply-demand balance becomes tight.

The move comes as part of efforts to prepare for a possible disruption in stable imports of liquefied natural gas from Russia.

Japan relies on imports for almost all domestic gas supplies. Of all gas consumed in the country, 60 pct is used for power generation, and 30 pct for city gas.

Of Japan's LNG imports, those from Russia account for about 9 pct. There are concerns about stable imports from Russia as Russian President Vladimir Putin has signed a decree to effectively seize the Sakhalin-2 oil and natural gas development project in the Russian Far East.

Discussions on details of the envisioned gas-saving system started at a meeting of the Advisory Committee for Natural Resources and Energy, which advises the industry minister, on Monday.

[Copyright The Jiji Press, Ltd.]

Jiji Press