Japan's strategy for securing natural resources

Abstract

In the wake of the Great East Japan Earthquake in 2011, the thermal power ration has increased to 90% of total electric power due to the long-term shutdown of nuclear plants. Currently LNG thermal power alone accounts for nearly 50% of domestic power generation. Accordingly Japan's LNG demand increased by 30% after 2011, and in addition, Japan's LNG import price, linked to crude oil import price, has soared because of the increase in oil prices. As a result, the overall fuel cost in Japan has increased. Lowering fuel import costs is an urgent mission for the Japanese Government. We briefly introduce Japan's strategy for securing natural resources with competitive prices through diversification in this paper.