Japan to Help Companies Secure Extra Stock of LNG

Politics

Tokyo, Dec. 5 (Jiji Press)--Japan's industry ministry plans to introduce in fiscal 2023 a system to help private companies secure "strategic" excess stock of liquefied natural gas, in case of a supply disruption, it was learned Monday.

Through the system, Japan hopes to maintain LNG stock equivalent to one tanker between December 2023 and February 2024, when LNG demand is expected to rise for heating purposes.

The plan was presented at the day's meeting of an expert panel of the Advisory Committee for Natural Resources and Energy, which advises the industry minister.

The Japanese government plans to offer the support after designating LNG as a strategically important item under the economic security promotion law.

Under the planned system, strategic LNG stock secured by trading firms, power and gas utilities and others would be sold to power and gas firms facing fuel shortages if the supply-demand balance tightens.

[Copyright The Jiji Press, Ltd.]

Jiji Press