Japan said it will “seriously consider” participating in LNG reloading and storage terminals, including the one planned on the Kamchatka Peninsula in Russia’s Far East, as part of its efforts to diversify its supply sources as well as help expand the Asian LNG market, a Japanese government official said.
The development comes as the Ministry of Economy, Trade and Industry has for the first time requested a budget to finance Japanese companies participating in LNG reloading and storage terminals abroad.
The finance will be provided as part of a state-owned Japan Oil, Gas and Metals National Corp scheme, under which Japanese companies can receive finance and equity investment should Jogmec deem its support would help national energy security.
Jogmec was allowed to finance Japanese companies participating in LNG reloading and receiving terminals overseas, following an amendment to the Jogmec law that took effect on 12 June.
The budget for supporting Japanese companies’ possible participation in LNG reloading and storage terminals is part of METI’s requested budget of US$648 million for its financial support via Jogmec for fiscal 2021-22 (April-March), up 21.2 percent from the 2020-21 budget.
METI’s increased is 2021-22 budget request for the Jogmec financial scheme primarily aimed at supporting upstream exploration and asset acquisitions comes at a time when the ministry is pushing to acquire upstream assets while oil prices are low.
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