Japan eyes support measures for long-term LNG contracts

The Japanese government is considering providing assistance to companies signing long-term import deals for liquefied natural gas (LNG), public broadcaster NHK reported on Wednesday. This comes as the government tries to secure a stable supply of LNG with energy security becoming a major global issue, the report said. LNG thermal power accounts for about 30 percent of total electricity generated in Japan, and a surge in costs following Russia's invasion of Ukraine has led to a hike in utility bills. The Ministry of Economy, Trade and Industry expects LNG to remain an important source of energy despite decarbonization efforts around the world, the report said, adding that the ministry believes procuring a supply at stable prices is a necessity. The ministry will begin discussing measures to make it easier for companies to seal supply agreements that are 10 years or longer, which includes ways to limit risk from unexpected drops in demand. It may offer the firms financial aid packages to secure storage ta nks in Japan and abroad, and launch a framework to help them resell LNG, the report added. Source: Kuwait News Agency