Japan to increase investment in upstream LNG projects

TOKYO (Reuters) - Japan plans to increase investment in upstream liquefied natural gas projects to spur new development and boost fuel purchases by domestic companies, Japan's Industry Minister said on Friday

Global investment in new LNG developments has fallen sharply as the global trend towards decarbonisation has grown, Koichi Hagiuda said, even though demand, especially in Asia, has even risen

"Governments need to be at the forefront of getting LNG through partnerships with the private sector

He said the government aimed to provide "risk funding" through the state-run Japan Oil, Gas and Metals National Corporation (JOGMEC) for existing LNG projects that could rapidly boost production through expansion, without giving details

The minister added that the G7 energy ministers meeting in early March recognized the importance of investing in the LNG sector to ensure energy security

Hagiuda has said Japan will hold the concessions for the two projects because they are a stable source of long-term and cheap energy, but will also work to reduce its reliance on energy by diversifying supply sources