Japan's Organization for Metals and Energy Security (JOGMEC) is preparing to offer financial support to local firms investing in new LNG initiatives, with the goal of strengthening Japan's energy security and guaranteeing a consistent LNG supply. LNG plays a crucial role in the country's electricity energy mix, representing 34%. As the top global LNG importer, Japan has witnessed state-owned JOGMEC backing several LNG projects, including Indonesia's Tangguh project, through equity investments.
Ichiro Takahara, the chairman and CEO of JOGMEC, mentioned in an interview that they have received multiple inquiries from Japanese companies about new LNG projects and are preparing to make decisions on providing financial assistance. These efforts align with Japan's broader strategy to increase its self-sufficiency in oil and gas from 33.4% in 2022 to over 50% by 2030.
As part of JOGMEC's five-year business plan launched in April last year, the objective is to raise Japan's equity oil and gas offtake by 70,000 barrels of oil equivalent per day, reaching 1.05 million by March 2028. This plan underscores Japan's dedication to natural gas as a crucial energy source, despite its involvement in the COP28 summit, where it joined nearly 200 countries in agreeing to transition the global economy away from fossil fuels.