Japan’s liquefied natural gas (LNG) imports continued to decline in 2023, falling by 0.4% to 65.9 million metric tons (mt). Shipments from the United States increased, while imports from Russia decreased. Japan remains the world’s second-largest LNG buyer after China.
Naohiro Maekawa, an executive officer at JERA, Japan’s top LNG buyer, said that “an increase in U.S.-produced gas exports would improve Japan’s energy security. Japan does not have its own large-scale energy resources and relies on imports for its energy supply.” After returning to office on January 20, U.S. President Donald Trump ordered the U.S. Energy Department to resume LNG export application reviews, reversing a previous policy.
JERA, which manages around 30-35 mt of LNG annually, sources nearly half of its supply from the Asia Pacific region, including Australia, Malaysia, Indonesia, and Russia. The company’s profits fell from 339 billion yen ($2.3 billion) to 155 billion yen ($1 billion) in the April-December period due to lower profitability in overseas power generation, fuel, and renewable energy businesses. JERA operates renewable energy projects, including the Formosa 2 offshore wind farm in Taiwan.
Japan is also exploring LNG trade expansion. In the fiscal year ending March 2023, Japan’s global LNG trade increased by 21% to 38.25 mt. Reuters reported that Japan is considering supporting a $44 billion gas pipeline project in Alaska to strengthen ties with the U.S. government and avoid potential trade disputes.
While LNG remains part of Japan’s energy supply, renewable energy projects continue to expand. Large-scale projects, such as the 235-MW Setouchi Kirei Solar Power Plant and the 140-MW Akita Noshiro Offshore Wind Farm, are part of this transition. Smaller renewable projects are also being developed. The Miyako Island Solar Farm, with a capacity of 21 MW, provides electricity to local communities. The Hokkaido Battery Storage Project integrates renewable energy with a 60-MW battery system to balance electricity supply. Small-scale biomass plants in rural areas use agricultural waste to generate power.
Research into hydrogen energy is ongoing. The Fukushima Hydrogen Energy Research Field (FH2R) produces hydrogen using solar power and has a production capacity of 10 MW. These projects reflect Japan’s diversification efforts alongside LNG imports.
