Japan’s appetite for LNG is poised to shrink in 2024

Planned reactor restarts and expiring supply contracts mean changes ahead for Japan’s well-established LNG sector

Japan will look to maintain 2023’s momentum by restarting more of its idled nuclear reactors in 2024. This could eat into gas-fired power’s share of the electricity mix and lower LNG imports again, following a decline in shipments in 2023. But the gradual resumption of Japanese nuclear power has been beset by delays and uncertainties, presenting upside potential for LNG imports. Japan started 2024 with c.14% less available nuclear capacity than a year ago due to outages from planned maintenance at several reactors. But if all goes according to plan, under Prime Minister Fumio Kishida’s pro-nuclear administration Japan could be set to finish 2024 with a 59% year-on-year increase in available