The Ministry of Economy, Trade and Industry (METI) held a meeting of experts on February 19, 2021 and indicated a policy that would support the introduction of liquefied natural gas (LNG) in Asian countries. [1] The Japanese government plans to encourage the introduction of LNG infrastructure not only at LNG thermal power plants but also at LNG receiving bases and liquefaction facilities. Additionally, the Japanese government plans to support the gradual decarbonization efforts of Asian countries.

Coal is a major source of energy for countries such as Indonesia and Vietnam due to its affordability. According to the METI, a shift from coal to LNG in seven Asian countries—India, Indonesia, Vietnam, the Philippines, Malaysia, Thailand, and Myanmar—would reduce carbon emissions by about 864 million tons and increase LNG demand by 16 million tons. According to the minister of METI, increased demand for LNG in other Asian countries will lead to higher levels of production by countries in the region and may lower procurement costs of the energy source. Japan is the world’s largest LNG consumer and relies on LNG for nearly 40% of total power production. The country’s main suppliers are Australia, Qatar and the United States, but Japan is hoping to expand production in Asian countries. The increased effort to reduce purchasing costs and guarantee LNG supply follows an unseasonably cold winter which coincided with depleted LNG stocks.

[1] https://www.japantimes.co.jp/news/2021/02/23/business/lng-coal-energy/