Natural Gas, LNG

Japan natural gas import costs sky rocket

Japan switched 30% of total electricity generation from nuclear to LNG

Japan natural gas import replaces all nuclear energy

Japan switched about 30% of electricity capacity from nuclear to mainly natural gas powered thermal power stations within 13 months. We have analyzed Japan’s natural gas imports, which have skyrocketed to almost 2% of Japan’s GDP. Graphics and more details below in this newsletter. Find detailed analysis of Japan’s oil, coal and gas imports in report on Japan’s Electricity and Energy Landscape.

Japan's natural gas imports skyrocket
Japan’s natural gas imports skyrocket

Natural Gas (LPG and LNG) imports skyrocket to 2% of GDP

Since Financial Year 2010 (ended on March 31, 2011, a few days after the March 11 disaster) Japan’s natural gas imports have skyrocketed to almost 2% of GDP – while gas imports were around 0.5% or below of GDP until 2003.

There are two reasons for Japan’s skyrocketing payments for LNG imports

  1. increased import volumes to replace nuclear energy by LNG fired thermal power stations, and
  2. a “Japan premium” on the LNG prices, Japan has to pay above world market prices because of Japan’s special situation, and relatively weak bargaining position.
    Japan is of course under big financial pressure to reduce the payments for LNG imports.

Our report on Japan’s energy sector includes detailed analysis of Japan’s oil, gas and coal imports, and many other data on Japan’s energy and electricity sector, which we continuously update.

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