Amid the prospect of Russian gas disruption, Japan, a resource-hit nation, is securing long-term supplies of liquefied natural gas from close allies Australia and the United States.
Its key contracts with providers, including Russia, are due to expire by the early 2030s.
Last month, JERA, Japan’s largest power generator, agreed to acquire a 15.1% stake in the Scarborough project of Woodside Energy (ASX:WDS) in Australia.
This was one among a series of deals as the risk of disrupted access to gas from its northern neighbor, following Russia’s invasion of Ukraine, places a heightened need for reliable, long-term supply sources.
LNG makes up around a third of Japan’s power generation and it is the world’s second-largest importer of LNG, after China.
In spite of a drop of 8% in imports in 2022 to the lowest since 2009, as Japan has increased the use of renewable energy and restarted some nuclear reactors following a total shutdown after the Fukushima disaster in 2011, LNG continues to be a major part of Japan’s energy mix.
Woodside Energy is an Australian petroleum exploration and production company, and is one of the world’s largest producers of LNG.