Tokyo: Japan is preparing to significantly increase its liquefied natural gas (LNG) purchases for its national emergency reserves beginning January 2025, marking a major step in strengthening the country’s energy security. According to officials from the Ministry of Economy, Trade and Industry (METI), this move comes amid growing uncertainty in global gas markets and concerns over supply disruptions due to ongoing geopolitical tensions.
Under the revised plan, Japan will begin securing one LNG cargo each month starting in January. Each shipment will contain around 70,000 metric tons of gas, amounting to approximately 840,000 tons annually. This represents a major expansion from the previous reserve levels, which averaged only about 210,000 tons per year. The decision is part of Japan’s Strategic Buffer LNG (SBL) program, a state-backed initiative designed to ensure stable supply in times of crisis.
The SBL program is managed by JERA Co., Inc., Japan’s largest LNG buyer and power generator. JERA will be responsible for storing and maintaining the LNG cargoes as part of the emergency stockpile. These reserves may be used domestically during energy shortages or resold on the global market if not needed. If any cargoes are resold, profits must be returned to the government, while any losses incurred will be compensated by state funding. This mechanism allows the program to operate with financial stability while prioritizing national energy security.
Japan’s reliance on LNG is among the highest in the world, as the country lacks underground gas storage facilities and depends heavily on imported fuel to meet its energy needs. Data from the International Energy Agency (IEA) shows that Japan’s LNG storage capacity at terminal sites stands at about 12 billion cubic meters, equivalent to around 9 million tons barely enough to cover one month of national consumption. Given such limitations, the expansion of LNG reserves is viewed as a crucial measure to safeguard the nation against possible disruptions in supply chains.
Sources close to the ministry emphasized that the increase in LNG purchases is not a direct response to Russia-related energy concerns but part of a broader effort to strengthen resilience across all supply routes. Japan has maintained a complicated relationship with projects such as Sakhalin-2 in Russia, but officials clarified that this policy is aimed at protecting national interests regardless of the source of potential risk. “Shifting to a monthly procurement model allows us to respond swiftly to any emergency situation,” a METI official noted.
The expanded reserve policy is also seen as a forward-looking measure that balances Japan’s stable but stagnant domestic demand for LNG with the unpredictable nature of global supply and pricing. Energy analysts point out that acquiring regular monthly shipments will help Japan maintain consistent reserves without triggering sudden market imbalances. This approach could also position Japan as a stabilizing force in the global LNG market, helping to prevent extreme price fluctuations during supply crises.
While the new strategy strengthens Japan’s energy resilience, it also introduces new economic considerations. Maintaining large LNG reserves involves substantial storage costs and logistical challenges. However, with strong government backing and a structured resale mechanism, industry experts believe the financial impact will remain manageable. The government’s role in offsetting losses ensures that utilities and consumers will not face undue financial burdens.
For Japan, the expansion of LNG reserves represents more than just a policy shift it is a strategic evolution. The initiative underscores Tokyo’s determination to safeguard its energy future amid rising geopolitical risks, volatile global markets, and climate-related uncertainties. By adopting a long-term and structured approach to energy security, Japan is sending a clear message: in an unpredictable global landscape, preparedness is no longer optional but essential.