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Japan Energy Summit 2025: Leaders address LNG security & decarbonisation

Industry leaders and key stakeholders gathered in Tokyo for the Japan Energy Summit & Exhibition 2025, setting the stage for crucial discussions on energy security, decarbonisation, and investment in new energy technologies. The Executive Committee, led by Nobuo Tanaka, Executive Director Emeritus of the International Energy Agency (IEA), met to outline the agenda for the upcoming summit and assess the challenges shaping Japanโ€™s energy landscape.

As Japan grapples with LNG supply uncertainties, ambitious decarbonisation goals, and evolving global energy partnerships, the Pre-Summit Industry Panel brought together over 100 senior energy professionals to examine the implications of the countryโ€™s Seventh Strategic Energy Plan. The panel featured key representatives from global energy, finance, and policy institutions, including Nobuo Tanaka of the IEA, Ken Kuroda of Cheniere Marketing Ltd, Bruno Gaussorgues of Societe Generale, Patricia Bader-Johnston of Silverbirch Associates KK, and Max Takahashi of Japan Marine Science Inc. Their insights provided an international perspective on Japanโ€™s energy transition, drawing from successful global strategies and investment frameworks.

A major focus of the discussion was Japanโ€™s energy security, particularly in light of expiring long-term LNG contracts. With supply agreements nearing expiration, panellists emphasized the urgency of securing new contracts amid shifting policies and geopolitical uncertainties. Ken Kuroda of Cheniere Marketing Ltd. highlighted challenges in expanding U.S. LNG exports to Japan, citing regulatory barriers and cost constraints. He stressed the necessity of long-term commitments to ensure stable LNG supply chains, noting that future demand uncertainty in Japan complicates the decision-making process for buyers. He also underscored the importance of guidance from the Seventh Strategic Energy Plan in addressing these challenges.

Japanโ€™s energy transition was placed in a broader global context, with Europeโ€™s decarbonisation policies offering key insights. Bruno Gaussorgues of Societe Generale outlined how Europeโ€™s regulatory frameworks and financial incentives have been instrumental in sustaining its clean energy transition. He noted that despite ongoing regulatory adjustments, Europeโ€™s overall trajectory remains firmly focused on sustainability. He further explained that the success of offshore wind and carbon capture projects in Europe was largely driven by early-stage government incentives, which reduced costs and accelerated deployment.

As Japanโ€™s LNG demand is projected to rise to 74 million tonnes, concerns over supply security were at the forefront of discussions. Kuroda pointed out that this demand could significantly outpace the base case scenario of 54-55 million tonnes, creating a notable supply gap that necessitates long-term agreements and strategic planning.

Investment and policy stability emerged as key factors in facilitating Japanโ€™s energy transition. Gaussorgues emphasised that while decarbonisation projects require substantial upfront investment, well-structured incentives can lead to significant cost reductions over time. Meanwhile, Patricia Bader-Johnston highlighted the importance of grassroots initiatives in complementing large-scale energy infrastructure. She advocated for greater investment in community-led renewable energy projects, arguing that for Japanโ€™s new energy strategy to succeed, more openness to smaller-scale, locally driven projects is essential.

The panellists collectively called for greater policy stability and regulatory clarity to attract sustained private sector investment. Bader-Johnston noted that without a clear carbon pricing mechanism and long-term policy assurances, investors would remain hesitant. She urged the government to establish a robust regulatory framework that would provide the necessary incentives for long-term investment in renewable energy and decarbonisation technologies.

These vital discussions will continue at the Japan Energy Summit & Exhibition 2025, scheduled to take place from June 18-20 at Tokyo Big Sight. The summit will bring together global and domestic energy leaders to advance discussions on LNG security, investment, policy frameworks, and strategic partnerships aimed at mitigating risks and fostering a sustainable energy future for Japan.

Christopher Hudson, President of dmg events, the organisers of the summit, emphasised the eventโ€™s significance at a pivotal moment in Japanโ€™s energy transition. He noted that Japan must strike a balance between energy security, affordability, and sustainability, and that the summit will serve as a unique platform for facilitating the discussions necessary to drive investment and policy direction. The insights shared by global energy leaders at the Pre-Summit Industry Panel reinforced the importance of international collaboration in ensuring a resilient and low-carbon energy future for Japan.

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