By Admin 
US Iran War: The power crisis may deepen in Japan this summer. The reason for this is the tension in the Middle East. Due to the war situation between America and Iran, Japan is facing constraints in LNG supply. Energy think tank experts said on Monday that if the Middle East crisis continues for a long time. If the blockage in the shipment of Liquefied Natural Gas (LNG) continues, Japan may have to face power supply shortage.
According to Reuters, Japan will face this problem at a time when the demand for air conditioning increases in the country. Takafumi Yanagisawa, experts associated with the Institute of Energy Economics, Japan (IEEJ), said Japan may face a summer electricity crisis due to LNG supply disruptions caused by the long-running conflict in the Middle East.
Japan imports 4 million metric tons of LNG every year
Japan imports 4 million metric tons of LNG every year. Six percent of its total LNG imports come via the Strait of Hormuz. Yanagisawa said that in 2024, Qatar and the UAE would account for 4% and 2% of Japan’s LNG imports passing through this waterway.
Australia is Japan’s largest LNG supplier. He also purchases from Malaysia, Russia, America and other countries. Yanagisawa said that LNG from Qatar and UAE supplies about 3.5% of Japan’s electricity.
This fall in summer is by no means small
He explained that since it affects what is known as ‘power reserve margin’. So a decline of 3.5% is by no means small as we enter the summer months. At the same time, Japan uses 60% of LNG for electricity production. The remaining portion is for gas and other supplies.
According to experts Yanagisawa, utility companies are purchasing additional quantity from the spot market. Existing contracts with suppliers such as Australia and the United States are using ‘Upper Quantity Tolerance’ (UQT). Under UQT, the contracted quantity can be increased by up to about 10%, subject to mutual agreement.
Here, Qatar’s LNG facilities have been damaged by Iranian attacks. Also, their repair may take up to five years. Yanagisawa has said that even if the blockade is lifted, the decline in exports from Qatar is likely to remain.
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