Inspenet, July 19, 2023.
Japan has plans to propose a world reserve of natural gas, similar to the emergency reserve in the oil sector, with the aim of avoiding future shortages and stabilizing prices.
The Japanese government will suggest that the International Energy Agency (IEA) establish a gas storage framework for member countries, according to sources familiar with the matter. The proposal will be presented during a conference in Tokyo next Tuesday, although the information is kept confidential.
For its part, Japan’s Ministry of Commerce, which co-organizes the LNG Producers-Consumers Conference with the IEA, has yet to respond to requests for comment.
World gas reserve: what is the purpose?
The government of the Asian country wants its proposal for gas reserves to be included in the agenda of the next ministerial meeting of the International Energy Agency (IEA). Currently, the IEA already requires member countries such as the US and Japan to hold an emergency reserve of oil equivalent to at least 90 days of net imports for critical times, and the country’s proposal seeks to establish a similar strategy for the gas.
The Russian invasion of Ukraine last year affected gas markets globally, resulting in record prices and concerns about the security of fuel supplies. At the Group of Seven summit earlier this year, Japan and Germany advocated for the inclusion of language allowing public investment in gas.
Although the member states of the European Union already have natural gas storage targets, a global framework does not yet exist. However, storing the fuel for longer periods can be challenging for Asian countries like Japan and South Korea, which generally keep the gas in the form of liquefied natural gas, which evaporates over time.
Source: https://petrobanca.com/japon-contempla-la-creacion-de-reservas-mundiales-de-gas/
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