EU faces tough task following Japan LNG model

The bloc may find it very difficult to replicate Japan’s approach due to fundamental differences in policy and markets

The EU has examined the so-called 'Japan model' for LNG procurement, which is based on long-term contracts, strong government-industry coordination and investments in supply projects. However, the bloc may find it very difficult to replicate Japan’s approach due to fundamental differences in policy and the markets.  Japan, with limited domestic gas resources and no feasible cross-border pipeline projects, began integrating LNG heavily into its energy mix in the 1970s, spurred by the 1973 oil crisis. Today, LNG accounts for about a third of Japan’s electricity generation.  The Japanese procurement model involves several key pillars. First, it prioritises long-term contracts with a diverse set