“The governments of both countries expect that this endeavour will serve as the starting point for a new LNG cooperation between Korean and Japanese companies,” said the statement co-signed by the South Korean Ministry of Trade, Industry and Energy.
As the globe’s runner-up in LNG import volumes — trailing only behind China — Japan’s strategy is all about adding flexibility and strength to its LNG buying tactics.
Energy resilience is at the heart of Japan’s endeavour, with a keen focus on securing more dynamic contracts.
These contracts are tailored for greater flexibility, allowing for the resale of cargoes, thus providing leverage to adjust to the changing winds of domestic demand.
Fostering LNG collaboration
The collaboration with South Korea is a testament to Japan’s vision of a streamlined LNG procurement strategy across the region.
This initiative sees JERA, Japan’s largest utility firm, joining forces with Korea Gas Corporation (KOGAS), a significant South Korean LNG buyer.
This partnership is based on a shared commitment to explore joint procurement opportunities, engage in cargo swaps and pursue other cooperative endeavours.
The Ministries of Economy, Trade and Industry of both nations have high hopes, viewing this collaboration as a cornerstone for new LNG cooperation between Korean and Japanese enterprises.
This approach signals a growing trend of regional cooperation aimed at safeguarding LNG supply against the backdrop of global market uncertainties.
Partnership key to LNG success
Journeying beyond its regional boundaries, Japan is also forging ties with Italy in its pursuit of LNG.
A preliminary agreement with Eni marks a significant milestone.
“We already deal with Japanese buyers on a short-term basis and we would like to expand that collaboration also to a long-term basis,” said Cristian Signoretto, Eni’s Director for Global Gas and LNG Portfolio, at an LNG conference in Hiroshima.