Japan's LNG Stockpile Surges Due To Ukraine War

Japan's inventories of liquefied natural gas have surged since Russia's invasion of Ukraine, government data showed, in an effort to address concerns over potential disruptions of the biggest portion of fuel for power generation in the country, Mainichi Japan reported.

Photo Insert: Another reason for the increase in LNG inventories is the possible disruption of gas supplies from the Sakhalin 2 project, from which Japan buys about 9 percent of its overall LNG imports.

LNG inventories in Japan stood at 5.9 million tons as of the end of August, up 17.6% from a year earlier and the largest since comparable data became available in 2008, according to the most recent data from the Japan Organization for Metals and Energy Security, a government agency.

Nine major Japanese utilities ramped up their combined LNG stockpiles 56 percent from a year earlier to 2.63 million tons as of Feb. 19.

The volume is above their average stockpiles in the previous five years, according to data from the Natural Resources and Energy Agency.

Concerns over LNG supplies increased after Russia reduced supplies to the European Union, prompting LNG importing countries to scramble to look for other suppliers and intensifying global competition.

Another reason for the increase in LNG inventories is the possible disruption of gas supplies from the Sakhalin 2 project in the Russian Far East. Japan buys about 9 percent of its overall LNG imports from the project, which is led by Russia, Kyodo News also reported.

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