Key facts
- Japan's LNG imports fell 7% in the quarter ending June.
- Utilities shifted to cheaper coal alternatives.
- Elevated spot prices for LNG contributed to the shift.
- Eneos Holdings is seeking to diversify its crude supply.
- Eneos Holdings aims to reduce reliance on the Middle East for crude oil.
Japan experienced a 7% reduction in liquefied natural gas (LNG) imports during the quarter concluding in June. This decline is attributed to energy utilities opting for coal, which became a more cost-effective alternative due to persistently high spot prices for LNG. The shift highlights the economic pressures influencing Japan's energy procurement strategies. In parallel, Eneos Holdings, identified as Japan's largest oil refiner, is undertaking efforts to diversify its crude oil supply. This strategic move aims to lessen the company's dependence on supplies originating from the Middle East, signaling a broader reassessment of geopolitical and market risks in its sourcing operations.