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Japanese LNG importers feel the squeeze at home and abroad

Rising competition in Japan’s gas market is making it harder for LNG buyers to pass on the high cost of contracted volumes to end-users Rising competition in Japan’s gas market is making it harder for LNG buyers to pass on the high cost of contracted volumes to end-users.
By Sally Bogle 30 August 2019 Asia Pacific / LNG 0 34533
Australia's Gorgon LNG project, from which Japan sources some of its gas. (Chevron)

A number of Japanese LNG buyers appear to be becoming increasingly exposed to price risks as greater competition at home combines with a widening gap between low global spot prices and higher prices for oil-indexed LNG.

The liberalisation of Japan’s electricity market in 2016 and the subsequent deregulation of its retail gas market in 2017 have contributed to the situation. Japan is due to further liberalise the gas pipeline and electricity transmission and distribution sectors in 2020, a move expected to boost competition...