- JOGMEC is preparing to give financial assistance to Japanese companies for new liquefied natural gas projects to ensure a stable fuel supply.
- According to the budget, Japan’s investment in oil and gas exploration and asset acquisition will double in the fiscal year.
The CEO of the Japan Organization for Metals and Energy Security (JOGMEC), Ichiro Takahara, said it is preparing to give financial assistance to Japanese companies for new liquefied natural gas (LNG) projects to ensure a stable fuel supply. Japan is the world’s second-biggest importer of liquefied natural gas (LNG) after China passed it last year. The fuel makes up 34 per cent of the country’s electricity energy mix. JOGMEC has previously provided financial support, mainly through equity investment, for many LNG projects, including Indonesia’s Tangguh project, to help Japan secure a stable energy supply.
JOGMEC’s CEO said, “We have received several queries from Japanese companies regarding new LNG projects, and we are preparing to decide on financial assistance.” Japan aims to raise its self-sufficiency for oil and gas to more than 50 per cent in 2030, from 33.4 per cent in 2022, by boosting equity stakes in overseas development projects. According to a budget request from the industry ministry, which oversees JOGMEC, Japan’s investment in oil and gas exploration and asset acquisition is expected to double in the fiscal year starting in April to 108.2 billion yen ($733 million) from 47.9 billion yen for the current year.
Under the five-year business plan started last April, it aims to raise Japan’s equity offtake from oil and gas projects supported by JOGMEC by 70,000 barrels of oil equivalent per day (boepd) to 1.05 million boepd by March 2028. He noted that natural gas will remain an important energy source for Japan even after it joined nearly 200 other countries at the COP28 summit in December, agreeing to transition the global economy away from fossil fuels.