How would a natural gas shortage affect Japan? 3 things to know

Importers eye long-term LNG contracts for stability as supply risks loom

20230822N LNG

Japan's Inpex sources supplies of natural gas from the Ichthys project in Australia. (Photo courtesy of Inpex)

TEN UMEKUNI, Nikkei staff writer

TOKYO -- As the global scramble for liquefied natural gas escalates, potential threats to supplies of the fuel are a growing concern for Japan, the world's largest LNG importer.

Russia's invasion of Ukraine last year, and the shunning of Russian LNG that followed, sent prices skyrocketing to historic highs, driving up costs for households. Though the market has settled down, tight supplies could remain an issue for some time.

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