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Securing a stable supply of LNG and promoting market expansion

With the lowest CO2 emissions among the fossil fuels and steadily advancing energy transitions, LNG continues to play an important role as a power source for the conversion of other fossil fuels and regulated power supply for renewable energy. It is also an energy resource that is expected to face increasing demands as a raw material for hydrogen and ammonia. LNG is an especially vital energy resource for Asian countries where economic development is expected to dramatically increase in future. JOGMEC will promote the securing of a stable LNG supply through financial support and strengthening of information provision functions.

Financial support for gas development and project creation of LNG

In the changing landscape of gas supply, we provide support such as geological and geophysical surveys, equity capital for exploration prior to prospect extraction/ development/ asset acquisition, and liability guarantees to Japanese companies. We also act as a bridge between governmental organization/local companies in gas-producing-countries and Japanese companies, by hosting seminars and conferences about specific LNG projects.

Current Status:
In May 2022, we co-hosted the “U.S. Alaska Investment Seminar” with the Alaska Gasline Development Corporation (AGDC) to provide update information about a large-scale LNG project (planned peak supply of 20 mtpa) as well as investment opportunities of CCS and fuel ammonia sectors in the US.

(Further information)

Mid-downstream business support for expanding the LNG market in Asia (financial support through equity capital/liability guarantee for storage/receiving terminal construction)

Considering that expansion and growth of the LNG market in Asia is essential to maintain and improve the energy security of Japan, we added investment and liability guarantee services related to storage businesses such as LNG transshipment and receiving terminals by Japanese companies to strengthen support for the entire LNG supply chain in June 2020. We will further utilize this service to strengthen cooperation with Japanese companies and LNG-demanding countries, while actively promoting activities such as value chain survey proposals and encouraging storage/receiving terminal construction through JOGMEC financial support.

Current Status:
We are promoting our financial support for the LNG transshipment/receiving terminals abroad to Japanese companies and LNG-demanding countries.
image of target project

Strengthening information provision functions regarding the LNG market

We continue to strengthen the provision of information on the LNG market through the JOGMEC website to improve information transparency and liquidity in the LNG market to strengthen LNG security. Specifically, we will continuously conduct surveys on spot LNG prices, destination flexibility for term contracts and LNG handling volume in cooperation with Japanese companies to understand the current status of the LNG market in Japan and provide timely information on the LNG market. In these ways we will contribute to effective policy to enhance LNG security and maintain Japan’s influence on the international LNG market.

Current Status:
Publication on the monthly spot LNG prices for delivery to Japan was launched in April, 2021. With the full cooperation from Japanese companies, we have published the results of our second annual survey on LNG handling volumes and destination restrictions in LNG Sales and Purchase agreements.
LNG Market Expansion Cycle
(Further information)

Japan Organization for Metals and Energy Security
(JCN 4010405009573)

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