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13 September 2018

Japan LNG – Part One: New energy strategy fails to dispel demand uncertainty

Japan’s Cabinet has agreed an energy strategy to address an overdependence on imported fuels, high electricity costs and excessive greenhouse gas emissions – all consequences of the 2011 Fukushima disaster. However, the 2030 fuel mix targets that drive policy remain unchanged from those agreed in 2015.

Continuing uncertainty over nuclear power still clouds the future for LNG demand in what remains the world’s biggest importer. Meanwhile, the full liberalisation of Japan’s electricity and gas markets is undermining the demand certainties that previously underpinned the LNG contracting strategies of the nation’s utilities. In Part One of a two-part series, LNG Business Review examines the policy context in which LNG buyers now must operate.

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