High natural gas prices on the spot market are the reason why the Japanese government will provide assistance to ensure sufficient supplies of liquefied natural gas. The Japanese Minister of Industry and Trade has pledged his support.
Assistance to Japanese companies
“The Japan Bank for International Cooperation and other public financial institutions will offer assistance to Japanese companies in securing sufficient supplies of liquefied natural gas,” Yasutoshi Nishimura, Japan’s minister of industry and trade, said during the LNG conference.
Nishimura believes that such a move will contribute to the stability of LNG supplies in Asia. Japan wants to avoid energy shortages in its market, so the government is offering adequate financial assistance before the heating season starts. Spot LNG prices have risen to a high level and remain at that level. The reason is the risk of gas supply disruption due to the war in Ukraine.
The details of the aid are not yet clear
Japan’s Minister of Industry and Trade has not yet provided details of the aid, but the Japan Bank for International Cooperation will offer financing to energy firms at low interest rates. They buy gas mainly on the basis of long-term contracts, purchasing about 20 percent of the total volume on the spot market.
