Japan plans to propose a global natural gas reserve, similar to the oil sector’s emergency reserve, to help prevent future shortages and stabilize prices.
The nation’s government will suggest that the International Energy Agency should create a gas storage framework for member countries, according to people familiar with the details. The proposal will be presented at a conference in Tokyo on Tuesday, said one of the people, who asked not to be named because the details are private.
Japan’s trade ministry, which co-hosts the LNG producers and consumers conference with the IEA, did not immediately respond to a request for comment on Monday, a Japanese holiday.
The government aims to have its gas storage proposal on the agenda of an IEA ministerial meeting in February. The IEA already requires member nations, such as the United States and Japan, to have an emergency reserve of oil equivalent to at least 90 days of net imports in times of emergency, and Japan’s proposal has as to aim to create a similar strategy for gas.
Russia’s invasion of Ukraine last year upended gas markets around the world, sending prices to record highs and fueling concerns about the security of fuel supplies. At the Group of Seven summit earlier this year, Japan and Germany pushed for the inclusion of language that left the door open to public investment in gas.
European Union member states already have natural gas storage targets, but no global framework yet exists. Storing the fuel for longer periods of time could be a challenge for Asian countries like Japan and South Korea, which typically keep it in the form of liquefied natural gas that evaporates over time.
