August 13, 2022

Japan could ask the public to reduce their natural gas consumption

Japan could ask households and businesses to reduce their consumption of natural gas, fearing that the stable supply from Russia could be disrupted.

The country’s commerce ministry will create a framework for it to call on big companies to limit the use of gas when supplies are tight, Nikkei reported, without saying where he got the information. The government will first ask households and businesses to reduce their gas consumption and, if that is not enough to avoid supply shortages, it will follow with specific conservation targets, according to the report. Details of the framework will be discussed in a ministry panel ahead of the request for winter fuel spikes, according to the report.

The report comes after recent moves by Russia to to transfer the rights to the Sakhalin-2 natural gas project to a new company, which could threaten foreign owners, including Japanese companies. The Japanese government is already asking its citizens to play their part in energy conservation, as electricity supply is expected to be limited.

Japan should have enough power this week, with rainy weather expected to lower temperatures in several parts of the country. The power reserve ratio, which measures the reserve capacity of generators, was expected to be the lowest for the Tokyo area on Wednesday at 7.1%, according to the Ministry of Commerce, still above the 3% needed for a network steady. The spot electricity price in Japan the following day stood at 31.22 yen per kilowatt hour on Monday, according at the Japan Electric Power Exchange, down 3.8% from the previous week.


Source link