Japan gives firms more control, faster returns in state-backed LNG ventures

The measures aim to spur corporate investment in LNG projects to secure mid- to long-term supplies of the fuel as geopolitical risks rise. Japan, the world’s second-biggest LNG buyer after China, has returned to the spotlight for producers as a boom in artificial intelligence, rising renewable energy costs and a new national energy plan drive appetite for long-term LNG deals.

METI also flagged the need to reduce risks in LNG transportation as long-term contracts increasingly shift to free-on-board (FOB) terms, under which buyers handle shipping and bear related costs and risks.