FEATURES OF THE DEVELOPMENT OF THE MODERN JAPAN GAS MARKET
Abstract
The article examines the features of the development of the modern gas market in Japan, which is the purpose of the article. It is emphasized that Japan is not rich in natural resources, Japan is the world leader in the import of liquefied natural gas and has the largest regasification capacity in the world. The article uses general scientific research methods, in particular analysis and synthesis, historical, graphic. Also, a forecast was made for natural gas production in Japan until 2025 using a regression research method. It is noted that the first volumes of imported supplies of liquefied natural gas to Japan date back to 1959, following the conclusion of a joint agreement between Tokyo Gas and Tokyo Electric Power Company with the American companies Phillips Petroleum and Marathon Oil. The analyzed structure of importers of liquefied natural gas to Japan from the beginning of the XXI century to 2022 inclusive. The leading exporters of LNG to Japan are: Indonesia, UAE, Brunei, Australia, Malaysia, etc. The dynamics of own production of natural gas in Japan during 2013-2022 are given and a conclusion is made regarding the steady trend to decrease its volumes. The main consumer of natural gas in the country is the energy sector. The significant impact on the increase in natural gas demand of the 2011 earthquake and the resulting Fukushima accident and the forced shutdown of all nuclear reactors in Japan is analyzed. It is noted that the basis of Japan's gas security policy is to diversify its long-term supply contracts and ensure sufficient flexibility in these contracts to increase imports during emergencies. It is noted that Japan has the largest regasification capacity in the world. Regional features of the location of Japan's gas networks are highlighted - high fragmentation, which is associated with their development around certain areas, including mountainous ones. According to the data of 2022, they amount to 227.7 million tons per year, more than twice the volume of South Korea, which occupies the 2nd place in the ranking. The largest of the 33 regasification LNG terminals in Japan were analyzed: Sodegaura, Futtsu LNG, Chita LNG, Senboku, Higashi-Ohgishima. The provisions of the law "On Gas Business" from 1954 regarding situations related to the consequences of earthquakes are analyzed.
References
Vivoda V. LNG import diversification and energy security in Asia. Energy Policy. June 2019. Vol. 129. Pp. 967–974. URL: https://www.sciencedirect.com/science/article/abs/pii/S0301421519300412 DOI: https://doi.org/10.1016/j.enpol.2019.01.073 (дата звернення 10.09.2023).
Медведенко С.В., Семенова К.Д. Промисловість Японії в розрізі ХХІ століття. Статистика – інструмент соціально-економічних досліджень: збірник наукових студентських праць. Вип. 3. Част. І. Одеса : ОНЕУ. 2017. С. 138–144.
Evans C. Tellurian ‘Adapts’ Driftwood LNG Plans on Heels of Covid-19. URL: https://www.naturalgasintel.com/tellurian-adapts-driftwood-lng-plans-on-heels-of-covid-19/ (дата звернення 10.09.2023).
Xunpeng Shi, Yifan Shen, Yanrui Wu. Energy market financialization: Empirical evidence and implications from East Asian LNG markets. Finance Research Letters. September, 2019. Vol. 30. Pp. 414–419. URL: https://research-repository.uwa.edu.au/en/publications/energy-market-financialization-empirical-evidence-and-implication/ DOI: https://doi.org/10.1016/j.fr.l.2019.02.004 (дата звернення 10.09.2023).
Countries with largest liquefied natural gas (LNG) import capacity in operation worldwide as of 2022. URL: https://www.statista.com/statistics/1262088/global-lng-import-capacity-by-country/ (дата звернення 10.09.2023).
History of Tokyo Gas Co., Ltd. – FundingUniverse. URL: http://www.fundinguniverse.com/company-histories/tokyo-gas-co-ltd-history (дата звернення 10.09.2023).
Japan's Natural Gas Dependence: A Liability For the G7. URL: https://energytracker.asia/japans-natural-gas-dependence-a-liability-for-the-g7/ (дата звернення 10.09.2023).
2021 Explainer: Why Japan's power sector depends so much on LNG. URL: https://www.eia.gov/international/content/analysis/countries_long/Japan/japan.pdf (дата звернення 10.09.2023).
Country Analysis Brief: Japan. URL: https://www.eia.gov/international/content/analysis/countries_long/Japan/japan.pdf (дата звернення 10.09.2023).
Explainer: Why Japan's power sector depends so much on LNG. URL: https://www.reuters.com/world/asia-pacific/why-japans-power-sector-depends-so-much-lng-2022-03-10/ (дата звернення 10.09.2023).
Search for natural gas to begin off Japan’s Shimane, Yamaguchi Prefs in March. URL: https://japannews.yomiuri.co.jp/business/economy/20220122-10483/ (дата звернення 10.09.2023).
Japan Natural Gas Security Policy. URL: https://www.iea.org/articles/japan-natural-gas-security-policy (дата звернення 10.09.2023).
LNG import volume by country 2022. URL: https://www.statista.com/statistics/274529/major-lng-importing-countries/#:~:text=Japan%20imports%20more%20liquefied%20natural,cubic%20meters%20worth%20of%20LNG (дата звернення 10.09.2023).
Sodegaura LNG Regasification Terminal, Japan. URL: https://www.offshore-technology.com/marketdata/sodegaura-lng-regasification-terminal-japan/ (дата звернення 10.09.2023).
Outline of Chita LNG Terminal. URL: https://www.jera.co.jp/system/files/private/Attachment%EF%BC%9AOutline%20of%20Chita%20LNG%20Terminal.pdf (дата звернення 10.09.2023).
Futtsu - LNG regas terminal. URL: https://www.woodmac.com/reports/lng-futtsu-lng-regas-terminal-9025138/ (дата звернення 10.09.2023).
LNG receving terminal information. URL: https://www.daigasgps.co.jp/en/service/gasproduction/plant/ (дата звернення 10.09.2023).
Higashi-Ohgishima - LNG regas terminal. URL: https://www.woodmac.com/reports/lng-higashi-ohgishima-lng-regas-terminal-9025436/ (дата звернення 10.09.2023).
Woodside to sell 10% scarborough interest to LNG Japan. URL: https://www.woodside.com/docs/default-source/asx-announcements/2023-asx/woodside-to-sell-10-scarborough-interest-to-lng-japan.pdf?sfvrsn=caa9b47f_3 (дата звернення 10.09.2023).
Japan's Mitsui, Itochu and JERA to agree on long-term Oman LNG contracts – source. URL: https://www.reuters.com/markets/japans-mitsui-itochu-jera-sign-new-long-term-contracts-buy-lng-oman-nhk-2022-12-26/ (дата звернення 10.09.2023).
INPEX Enters LNG Sales and Purchase Agreement with Venture Global LNG. URL: https://www.inpex.co.jp/english/news/assets/pdf/20221227.pdf (дата звернення 10.09.2023).
Vivoda V. (June, 2019) LNG import diversification and energy security in Asia. Energy Policy, vol. 129, pp. 967–974. Available at: https://www.sciencedirect.com/science/article/abs/pii/S0301421519300412 DOI: https://doi.org/10.1016/j.enpol.2019.01.073 (accessed September 10, 2023).
Medvedenko S. V., Semenova К. D. (2017) Promyslovist Yaponii v rozrizi XXI stolittia [The industry of Japan in the context of the 21st century]. Statystyka – instrument sotsialno-ekonomichnykh doslidzhen: zbirnyk naukovykh studentskykh prats. Odesa: ONEU. No. 3, part I, pp. 138–144.
Evans C. Tellurian ‘Adapts’ Driftwood LNG Plans on Heels of Covid-19. Available at: https://www.naturalgasintel.com/tellurian-adapts-driftwood-lng-plans-on-heels-of-covid-19/ (accessed September 10, 2023).
Xunpeng Shi, Yifan Shen, Yanrui Wu (September, 2019) Energy market financialization: Empirical evidence and implications from East Asian LNG markets. Finance Research Letters, vol. 30, pp. 414–419. Available at: https://research-repository.uwa.edu.au/en/publications/energy-market-financialization-empirical-evidence-and-implication/ DOI: https://doi.org/10.1016/j.fr.l.2019.02.004 (accessed September 10, 2023).
Countries with largest liquefied natural gas (LNG) import capacity in operation worldwide as of 2022 (2022). Available at: https://www.statista.com/statistics/1262088/global-lng-import-capacity-by-country/ (accessed September 10, 2023).
History of Tokyo Gas Co., Ltd. – FundingUniverse (2023). Available at: http://www.fundinguniverse.com/company-histories/tokyo-gas-co-ltd-history (accessed September 10, 2023).
Japan's Natural Gas Dependence: A Liability For the G7 (2023). Available at: https://energytracker.asia/japans-natural-gas-dependence-a-liability-for-the-g7/ (accessed September 10, 2023).
2021 Explainer: Why Japan's power sector depends so much on LNG (2021). Available at: https://www.eia.gov/international/content/analysis/countries_long/Japan/ japan.pdf (accessed September 10, 2023).
Country Analysis Brief: Japan (2023). Available at: https://www.eia.gov/international/content/analysis/countries_long/Japan/japan.pdf (accessed September 10, 2023).
Explainer: Why Japan's power sector depends so much on LNG (2023). Available at: https://www.reuters.com/world/asia-pacific/why-japans-power-sector-depends-so-much-lng-2022-03-10/ (accessed September 10, 2023).
Search for natural gas to begin off Japan’s Shimane, Yamaguchi Prefs in March. (2023). Available at: https://japannews.yomiuri.co.jp/business/economy/20220122-10483/ (accessed September 10, 2023).
Japan Natural Gas Security Policy (2023). Available at: https://www.iea.org/articles/japan-natural-gas-security-policy (accessed September 10, 2023).
LNG import volume by country 2022 (2022). Available at: https://www.statista.com/statistics/274529/major-lng-importing-countries/#:~:text=Japan%20imports%20more%20liquefied%20natural,cubic%20meters%20worth%20of%20LNG (accessed September 10, 2023).
Sodegaura LNG Regasification Terminal, Japan (2023). Available at: https://www.offshore-technology.com/marketdata/sodegaura-lng-regasification-terminal-japan/ (accessed September 10, 2023).
Outline of Chita LNG Terminal (2023). Available at: https://www.jera.co.jp/system/files/private/Attachment%EF%BC%9AOutline%20of%20Chita%20LNG%20Terminal.pdf (accessed September 10, 2023).
Futtsu - LNG regas terminal (2023). Available at: https://www.woodmac.com/reports/lng-futtsu-lng-regas-terminal-9025138/ (accessed September 10, 2023).
LNG receving terminal information (2023). Available at: https://www.daigasgps.co.jp/en/service/gasproduction/plant/ (accessed September 10, 2023).
Higashi-Ohgishima - LNG regas terminal (2023). Available at: https://www.woodmac.com/reports/lng-higashi-ohgishima-lng-regas-terminal-9025436/ (accessed September 10, 2023).
Woodside to sell 10% scarborough interest to LNG Japan (2023). Available at: https://www.woodside.com/docs/default-source/asx-announcements/2023-asx/woodside-to-sell-10-scarborough-interest-to-lng-japan.pdf?sfvrsn=caa9b47f_3 (accessed September 10, 2023).
Japan's Mitsui, Itochu and JERA to agree on long-term Oman LNG contracts – source (2022). Available at: https://www.reuters.com/markets/japans-mitsui-itochu-jera-sign-new-long-term-contracts-buy-lng-oman-nhk-2022-12-26/ (accessed September 10, 2023).
INPEX Enters LNG Sales and Purchase Agreement with Venture Global LNG (2023). Available at: https://www.inpex.co.jp/english/news/assets/pdf/20221227.pdf (accessed September 10, 2023).
