Japan Says Qatar Gas Halt Won't Immediately Impact Energy Supply

Alanbatnews -

Tokyo is confident that a halt in Qatari liquefied natural gas (LNG) production will not immediately disrupt Japan's energy supply, according to Japan's trade minister.

The country possesses ample reserves and flexible mechanisms to manage potential disruptions, authorities say.

Trade Minister Ryusei Akazawa stated on Tuesday that Japan has measures in place to address any potential supply issues, including utilizing the spot market and facilitating cargo swaps between domestic utility companies.

Akazawa noted that Qatari gas accounts for only about 4% of Japan's total LNG imports. He also mentioned that while some Japan-bound ships have been affected by Middle East unrest, the government currently has no specific plans to draw from its strategic oil reserves.

Japanese government data indicates that energy companies hold LNG reserves sufficient for approximately three weeks of domestic consumption. Furthermore, the nation possesses substantial oil reserves capable of covering 254 days of net imports, providing a considerable safety margin.

Japan imported approximately 3.4 million metric tons of LNG from Qatar last year, making it the world’s second-largest importer of the fuel, according to customs data. Including supplies from Oman and the United Arab Emirates, the Middle East provides Japan with about 7 million tons annually, representing roughly 11% of its total gas needs.

Japan actively manages its LNG supply through trading approximately 40 million tons of LNG annually and can redirect portions to the domestic market if necessary. The country also has a mechanism to ensure the purchase of at least one gas shipment monthly, equivalent to 70,000 metric tons, as a precautionary measure to mitigate supply shortage risks.

These assurances come amidst ongoing tensions involving the United States, Israel, and Iran, which have caused widespread disruptions to global air transport and shipping through the Strait of Hormuz, a critical passage for a fifth of the world's oil trade and significant gas volumes. Japan's Foreign Ministry reported on Tuesday that approximately 42 Japan-linked vessels remain stranded in the Gulf region, awaiting secure passage.