Japan’s own gas reserves are small and the country is one of the largest importers of the fuel. However, Japan is a gas empire because its companies participate in all global LNG chains, from production and financing to transportation and equipment. The “gas” profit of Japanese companies is equivalent to the profit that other Japanese companies receive from the production of famous consumer electronics products.
“Japan’s support for the gas industry has fueled the rapid expansion of the $250 billion LNG market over the past half century. And while the United States and other exporters continue to benefit from this growth, Japan, with small gas reserves of its own, has become indispensable in every link of the supply chain,” writes Bloomberg.
“The industry simply could not be where it is without Japan,” the former director of the Australian group Woodside Energy told the agency. Peter Coleman. “They were trying to diversify into new markets and enter new markets.”
Bloomberg estimates that major Japanese companies made at least $14 billion in profits from gas-related businesses in the last fiscal year.
“This is approximately equal to the combined profits of the major consumer electronics manufacturers in Japan.” – continues the agency.
On the one hand, Japanese companies and banks are investing in fuel production and LNG plants. On the other hand, they produce equipment and transport LNG.
“For Japanese companies this is very profitable. Mitsubishi Heavy Industries manufactures one in three gas turbines in the world. The company forecasts its revenue will rise over the next three years to a record 5.7 trillion yen ($35 billion). Mitsubishi Corp., a leading trading house, made more than a fifth of its 2023 profits from its natural gas business. Mitsui OSK (MOL), the world’s largest owner of LNG carriers, intends to increase its fleet by 50%. Nippon Steel, Japan’s largest steel producer, has signed new pipe supply agreements.” —Bloomberg writes.
“Japanese companies are deeply embedded in the gas supply chain and exert influence at all levels,” said Mia Watanabe, an activist with the advocacy group Oil Change International. “The critical role of the Japanese government and corporate leaders in the global expansion of gas and LNG cannot be underestimated.”
Japanese companies remain active in the Russian LNG industry, transporting LNG from Yamal and Sakhalin and being shareholders in two projects.
As Bloomberg’s senior journalist points out: Esteban StaprzynskiRecently, Japan has also been actively involved in the global LNG trade. The country is restarting nuclear power plants, demand for gas is declining and in the last year alone, Japanese companies have resold on the world market 40% of the LNG, which they receive under long-term contracts and as part of other transactions. .
