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Japan to sign LNG deal with Italy for emergencies amid supply concerns
JAPAN TODAY   | 13 jam yang lalu
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The Japanese government said Sunday it will sign a memorandum of understanding to buy liquefied natural gas from a major Italian energy company during emergencies, as concerns over energy supply grew stronger with the Russia-Ukraine war dragging on and escalating conflict in the Middle East.
Japan will be able to purchase LNG from Rome-based energy giant Eni through the government-backed Japan Organization for Metals and Energy Security under the deal to be inked with the Italian government, which holds a stake in Eni.
Details such as the purchase volume and price have yet to be decided.
Eni is looking to gain support from Japanese companies for a LNG project in Mozambique, southeastern Africa, in return for the LNG purchase deal, according to a source familiar with the matter.
Japan increased LNG imports to run more thermal plants in the absence of nuclear power following the 2011 Fukushima nuclear crisis. LNG prices soared following Russia's invasion of Ukraine, raising electricity and gas bills.
Additionally, the situation in the Middle East has intensified with Iran's launch of ballistic missiles at Israel last week in retaliation for Israeli airstrikes in Beirut and other recent military actions.
Concerns have grown that Iran may block passage through the Strait of Hormuz, an important route for LNG carriers, including those from other leading producers Qatar and Saudi Arabia, amid the conflict.
Australia and Malaysia account for the majority of Japan's LNG imports, with only around 10 percent coming from the Middle East.
But if the situation there affects the LNG market, procurement and prices for resource-poor Japan will inevitably be impacted.
© KYODO
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