JOGMEC reports that Japan's LNG exports increased by 1% during FY23/24 due to an increase in external trade.

According to the Japan Organization for Metals and Energy Security, (JOGMEC), the volume of liquefied gas (LNG), handled by Japanese companies increased 1% on an annual basis in fiscal 2023/24 due to the increase in external trade.

Japan is the second largest importer in the world of super-chilled gasoline, behind China.

In 2030/31, Japan, a resource-poor country, aims to maintain a volume of LNG imports and exports, combined, of 100 million tons per year, to ensure energy security and to maintain Japan's position on the international LNG markets.

Japanese LNG imports dropped 8% in the fiscal period ended March 31, to 64.89 millions tons. In recent years, Japan has reduced its LNG imports due to the switch to renewable energies and nuclear reactor restarts.

According to a JOGMEC survey of 30 Japanese companies involved in the sale and purchase of LNG such as trading houses, oil and gas utilities and steelmakers, the volume of LNG "external" trade, or LNG sold to other companies, increased by 21%, to 38.25 millions tons.

The survey released on Monday showed that both the volume of LNG offtake and the supply obtained via term contracts and spot trading increased in the external trade.

According to a JOGMEC survey of 22 Japanese LNG purchasers, the proportion of their contract volume with destination restrictions to their total contract volume dropped to 39% from 42% a yea earlier in 23/24, and it is expected to further drop to 34% by 30/31.

The so-called "destination clauses" restricting resale have long been an issue for Japanese buyers. They have been in negotiations with global LNG providers to remove this clause from their existing contracts, or sign new contracts that do not include the destination clauses. This would give them more flexibility to resell spare loads. (Reporting and editing by Susan Fenton; Yuka Obayashi)

(source: Reuters)