Japan rushes LNG cargoes to Europe amid Ukraine tension
Japan has started diverting some of its liquified natural gas (LNG) cargoes to Europe, the country’s industry minister Koichi Hagiuda said on Wednesday, offering Europe a contingency plan over fears that supplies will be disrupted by a possible Russian invasion of Ukraine.
Multiple gas shipments are already being diverted to Europe by private Japanese companies, Koichi Hagiuda said, but declined to provide details of the quantum of LNG involved. He said the unusual diversions came after Japan received requests “to accommodate the need” for the fuel from the United States and European Union ambassadors.
“We have communicated to both the US and EU that this co-operation is to be carried out only to the extent that it does not affect Japan's electricity and gas supplies,” Hagiuda was quoted in local media.
Japan, the world's top LNG importer until last year, is heavily dependent on LNG – with some reports suggesting LNG stockpiles are already low in the country as record snow hits parts of it.
The government is likely to first secure sufficient LNG inventories needed for power generation and other domestic purposes and ask companies with LNG interests for cooperation, local media reported in Tokyo.
More ships will head to Europe in March, but LNG supplies will be strictly contingent on ensuring domestic demand is met, Hagiuda told reporters. A Japanese trade ministry official separately told Reuters that Japanese gas companies will receive market price for the fuel.
Natural gas used in Europe is mostly supplied from Russia, mainly via pipelines. With fears mounting of a conflict or military escalation in Ukraine, global fuel prices have hit record highs in recent times amid projections of an energy crisis in Europe – which depends heavily on Russian gas.
KEEPING THE ENERGY INDUSTRY CONNECTED
Subscribe to our newsletter and get the best of Energy Connects directly to your inbox each week.
By subscribing, you agree to the processing of your personal data by dmg events as described in the Privacy Policy.
More gas & LNG news

bp begins production from Raven Phase 2, offshore Egypt

Diamondback Nears Permian Deal to Buy Shale Producer Double Eagle

Australia’s Iron Ore Hub Reopens, Rio Mines Resume After Cyclone

Australia’s Iron Ore Export Hub to Reopen After Cyclone Weakens

Severe Cyclone Makes Landfall Near Australia’s Iron Ore Hub

Gas Traders Leave Essen Hungry for More on German Storage Plans

AG&P Pratham and THINK Gas toast the merger of their two brands

Russia, Turkey Discuss Gas Swap to Pay for Nuclear Plant

India LNG Buyers Negotiate US Deals Before Modi-Trump Summit
