Japan’s transformation from a major liquefied natural gas (LNG) importer to a global LNG hub is raising concerns over the region’s clean energy transition.
Once motivated by energy insecurity, Japan heavily invested in LNG following the 1970s oil crisis and again after the Fukushima nuclear disaster in 2011.
These moves helped reshape global LNG markets through long-term contracts and infrastructure innovation.
But as domestic gas demand falls and long-term LNG supply contracts remain in place, Japanese energy firms now find themselves with surplus capacity.
According to analysts, Japan’s “metamorphosis from buyer to merchant” is prompting firms — with state backing — to resell LNG and encourage other countries, especially in Southeast Asia, to adopt gas power.
This risks locking those nations into fossil fuel use at a time when the global focus is shifting to renewables.
This strategic export move hasn’t gone unnoticed in Australia, historically Japan’s main gas supplier.
While Australia continues to face domestic gas shortages and high prices, large volumes remain committed to Japanese contracts.
That tension could complicate bilateral energy discussions, particularly around shared decarbonisation goals.
While China accelerates its green tech investments for both economic and strategic gains and the United States under the Trump administration retreats from renewables for ideological reasons, Japan’s current energy diplomacy sits uneasily in the middle.
Japan’s LNG pivot risks slowing Southeast Asia’s clean energy transition appeared first on Energy Live News.