Japan’s Draft Energy Plan Could Squeeze LNG Importers, but U.S. Suppliers ‘Still in the Game’ — LNG Spotlight

Japan’s latest efforts to decarbonize could leave the liquefied natural gas (LNG) sector in the lurch as the nation looks to further reduce the share of fossil fuels in its energy mix by 2030.

A draft plan unveiled by the government last month would see the nation reduce the share of fossil fuels in its energy mix from 76% in 2019 to 41% in 2030. About half of the new target is expected to be supplied by natural gas, which Japan imports as LNG.

The nation is currently the world’s largest LNG importer, and the plan could pose significant risk to the sector if adopted, experts said.

“One of the biggest consequences is likely to be that it creates a lot of uncertainty for Japanese LNG importers,” said Jason Feer, global head of business intelligence at shipbroker Poten &...