Results of FY2024 Survey on LNG Handling Volume by Japanese Companies

18th Nov 2024

1. Outline of the survey

• Objectives: The government policy of "New Strategy for International Resources" (March 2020) sets a target of 100 million tons of LNG volume handled by Japanese companies by FY2030, including so called “external trade”. The Strategy states that in order to enhance LNG security and maintain Japan's influence in the international LNG market, LNG policy should be shifted to a direction that encourages Japanese companies to become involved in transactions supplied to overseas, taking into account the entire value chain from production to receiving of LNG. This is the fourth year since the survey was launched in FY2021 for the purpose of confirming the status of achievement of this target.
• Survey year: FY2023
• Survey Period:  July to August 2024 (one and half month period)
• Survey Targets: A total of 30 Japanese companies which handle LNG, such as electric power companies, gas companies, trading companies, oil companies, and steel companies (all companies cooperated with our survey.)

2. Definition of “LNG handling volume by Japanese companies”

• The LNG handling volume by Japanese companies is defined as the LNG volume that is possessed, even temporarily, by Japanese companies for procurement or sales. In order to eliminate duplication between procurement and sales of LNG, the LNG volume handled is the sum of (1) the LNG procured for consumption in Japan and (2) the LNG sold to third countries.
• The LNG procured for consumption in Japan (1) is defined as the volume of LNG received by Japanese companies at receiving terminals in Japan as the final destination. Then the survey extracts the data of the import volume from the Trade Statistics of Japan, Ministry of Finance. The LNG sold to third countries (2); “external trade” consists of (A) LNG of which Japanese companies have offtake rights through participation in LNG projects and (B) LNG procured by Japanese companies through term contracts and spot trade. Note that duplication of trades by Japanese companies for resale after sales to foreign companies is not excluded.

3. Result of the survey

• The LNG handling volume by Japanese companies in FY2023 was 103.13 MT. This is a slight increase of 1.01 MT from the previous year, the companies have continuously achieved 100 MT since FY 2019.
• LNG imports in FY2023 totaled 64.89 MT, down 5.66 MT from the previous year. The volume of the “external trade” was 38.25 MT, up 6.67 MT from the previous year. Import volume decreased. External trade volume increased, and the LNG handling volume in FY2023 increased from FY2022.
• The volume of the “external trade” increased in FY2023 compared to the previous year, both for the offtake volume of LNG projects and the volume procured through term contracts and spot trades.