Japanese utilities would see impact if U.S. pause of LNG export permits becomes long term

KYUDEN Holdings

16/02/2024 10:07

By Yuka Obayashi
       TOKYO, Feb 16 (Reuters) - 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  9508.T , 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)
 ((Yuka.Obayashi@thomsonreuters.com; +813-4563-2761;))