Japan Organization for Metals and Energy Security (JOGMEC) and Eni S.p.A (Eni) signed a Memorandum of Cooperation (MoC) aimed at expanding cooperation in the areas of strengthening gas security and supporting the diversification of LNG supply and procurement. The MoC will strengthen the relationship with Eni, an LNG producer with a global portfolio, and contribute to diversifying LNG supply sources in the event of an emergency.
JOGMEC has provided technical and financial support for LNG projects around the world. Eni has a portfolio of LNG assets, mainly in Africa and Asia/Oceania, and has been working to ensure a stable supply of LNG. The two companies agreed to sign a memorandum of cooperation with the aim of expanding cooperation in strengthening gas security and diversifying LNG supply and procurement, and the MoC was signed and announced at the LNG Producer-Consumer Conference 2024 held in Hiroshima, Japan on October 6, 2024.
The crisis in Ukraine has prompted a debate on the role of LNG as a fuel for energy security and low-carbon transition, and according to the International Energy Agency (IEA) , demand for LNG is increasing, particularly in Asia, and is expected to continue to increase steadily until 2030 under current policy settings. In Japan, LNG is the largest fuel for power generation, accounting for approximately 30% of the power generated, and its affordable and stable supply is essential for the economy and people's lives, but it is still exposed to risks such as geopolitical factors, weather factors, and equipment failure, etc.
The MoC will accelerate dialogue between JOGMEC, the Japanese government agency under the Ministry of Economy, Trade and Industry (METI), responsible for implementing METI’s policy, and Eni, which has been working to ensure a stable supply of LNG, with the aim of improving the stable supply of gas in normal times and responding to sudden disruptions in the supply of LNG, including LNG supply opportunities by Eni to Japan and the support of Japanese financial institutions to the Coral North project in Mozambique.
In the past, new function was added to JOGMEC: in the event that it is difficult for private companies to procure fuel in an emergency, JOGMEC will procure fuel for power generation and liquefied natural gas for city gas production based on a request from the Minister of Economy, Trade and Industry. The MoC will accelerate the consideration of the procurement.
In addition, JOGMEC will work with stakeholders to reduce methane emissions across the LNG value chain through the Coalition for LNG Emission Abatement toward Net-zero (CLEAN Initiative).
Under the MoC signed this time, JOGMEC and Eni will hold dialogues on gas security and diversification of LNG supply and procurement for both parties, with the mutual recognition that LNG will play a role as a transition fuel.
