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Survey on LNG Trades

Japan Fair Trade Commission, Survey, June 2017

See Japan Fair Trade Commission's resume

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In recent years, the following significant changes in the demand and supply of liquefied natural gas (hereinafter, “LNG”) are pointed out:

1. Tendency to ease supply-demand balance along with restart of nuclear power plants and along with future diversification of energy mix
2. More uncertain prospects Japanese users have in forecasting domestic demand and supply because of full liberalization of electricity and gas retail markets
3. Worldwide increase in demand, including Asia
4. Worldwide increase in supply along with development of unconventional
natural gas etc.

Because of the above, Japanese users predict excess supply of LNG currently. However, they are concerned that destination restrictions will prevent them from reselling excess LNG inside or outside Japan in future. The Japanese government has decided to promote abolishment of destination restrictions at the Cabinet meeting.

Given these changes, the Japan Fair Trade Commission has initiated a survey in order to clarify the problems in perspective of competition
policy and the Antimonopoly Act.