Japan’s LNG dilemma and energy supply challenges

Japan's LNG imports 2012-2013
Japan's LNG imports 2012-2013

Energy supply security has always been a major concern for Japanese governments. The decision to close all its nuclear power plants following the 2011 Fukushima nuclear accident has imposed huge costs on Japan's economy. Now the government plans to restart its nuclear generation, using more coal-fired power plants, creating a gas-to-gas and a spot-LNG market, as well as expanding renewables, in an attempt to reduce its import-dependency on LNG.

<i>Japan was the world’s largest LNG importer even before the Fukushima nuclear catastrophe in 2011. Its nuclear phase-out after Fukushima resulted in increasing costly-LNG imports. This increased its unstable energy import dependencies ...

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