Tokyo — Japanese electric utilities won’t be affected in the short term by the United States’ recent decision to pause liquefied natural gas export permits but if the move becomes long term it could affect global LNG supply, the head of their industry body said on Friday.
U.S. President Joe Biden last month paused approvals for applications to export from new LNG projects to review the climate change and economic impact of such projects. Japan is the world’s second-biggest LNG importer after China.
“The move will likely have limited impact on LNG procurement by Japanese companies as projects that have already obtained permits will not be affected,” Kazuhiro Ikebe, chairman of Japan’s federation of electric utilities, told a news conference.
But he also raised concerns, saying the U.S. move would have a major impact on global LNG supply and demand if it continues over the long term.
“The U.S. is the world’s largest exporter of LNG and we expect the U.S. will maintain a responsible position in stabilizing the global energy supply and demand,” he said, adding that the group has no plan to lobby the U.S. government.
However, Ikebe, who is also president of Kyushu Electric Power Co Inc said the abrupt move would not dent Japanese utilities’ confidence in the United States or change their investment stance toward the country.
Reporting by Yuka Obayashi; Editing by Susan Fenton – Reuters
