- Table of Contents
Japan is an island nation situated in the Pacific ocean east of the Sea of Japan, China, North Korea, South Korea and Russia. The island stretches from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south. Japan is an archipelago of 6,852 islands. The four largest islands are Honshū, Hokkaidō, Kyūshū and Shikoku, together accounting for 97% of Japan’s land area. Japan has a total surface of 377,944 square kilometers (145,925 sq mi) and is inhabited by approximately 127.96 million people (2011 estimate). As of 2010, Japan is the third largest economy in the world, after the United States and China (estimates of the International Monetary Fund and World Bank) with a nominal GDP of $5.85 trillion. Japan ranks fourth after the United States, China and India in terms of purchasing power parity. [1]
Japan is a second largest consumer of natural gas in the world, after the United States, with a total demand of 105,284 mcm of natural gas in 2010. Japan had a natural gas supply per capita of 0.677 toe in 2010 and is highly dependent on imports to fulfill its demand for gas. Japan hosts 0.02% of the world’s total reserves of natural gas, which is equivalent to around 37 bcm. [1], [2]
| Basic Gas Facts | 2006 | 2007 | 2008 | 2009 | 2010e |
|---|---|---|---|---|---|
| Gas reserves (bcm) | .. | 38 | 38 | 38 | 37 |
| Gas production (mcm) | 3408 | 3729 | 3706 | 3555 | 3343 |
| Gas consumption (mcm) | 97237 | 106133 | 103843 | 103356 | 105284 |
| Gas imports (mcm) | 88633 | 95627 | 95391 | 92812 | 98787 |
| imports pipeline (mcm) | - | - | - | - | - |
| imports LNG (mcm) | 88633 | 95627 | 95391 | 92812 | 98787 |
| import dependency (%)* | 91.15% | 90.10% | 91.86% | 89.79% | 93.29% |
| Gas exports (mcm) | - | - | - | - | - |
| Natural gas supply per capita (toe/cap) | 0.606 | 0.65 | 0.657 | 0.634 | 0.677 |
| Technically recoverable shale gas resources (bcm) | .. | .. | .. | .. | .. |
| Coal Bed Methane reserves (bcm)** | .. | .. | .. | .. | .. |
| c = confidential; - = nill; ..= not available * Imports dependency of natural gas = (imports - exports) / consumption **Proven & Probable (2P); U.S. Environmental Protection Agency, Coalbed Methane Outreach Program Sources: Natural Gas Information © OECD/IEA, 2011, EIA Analysis & Projections, GMI/EPA Coal Mine Methane Country Profiles | |||||
| Basic Energy Facts | 2006 | 2007 | 2008 | 2009 | 2010e |
|---|---|---|---|---|---|
| Total Energy Consumption (mtoe) | 518.29 | 515.33 | 495.55 | 471.99 | 494.9 |
| CO2 Emissions (Mt) | 1244 | 1263.34 | 1151.14 | 1092.86 | .. |
| CO2 intensity (tCO2/toe) | .. | 2.41 | 2.32 | 2.32 | .. |
| Energy consumption per capita (toe/cap) | 4.52 | 4.467 | 4.33 | - | .. |
| CO2 per capita (tCO2/cap) | 9.757 | 9.68 | 9.02 | 8.58 | .. |
| c = confidential; - = nill; ..= not available Sources: Natural Gas Information © OECD/IEA, 2011 & EIA International Energy Statistics | |||||
- 1. Natural Gas Information © OECD/IEA, 2011
- 2. EIA Analysis & Projections - World Shale Gas Resources 2011
- 3. Global Methane Initiative/U.S. Environmental Protection Agency - Coal Mine Methane Country Profiles 2010
This section explores total primary energy consumption and gas demand by sector for Japan.
In 2010, Japan’s total TPEC amounted to 494.9 mtoe, a 4.85% increase compared to 2009. Oil accounted for 202.17 mtoe while coal and gas accounted for 115.62 mtoe and 85.95 mtoe respectively. Other sectors accounted for 91.15 mtoe. [1]
In 2010 Japan consumed a total of 105,284 mcm of natural gas 1.86% more than in the previous year. In 2009, Japan consumed a total of 103,356 mcm of natural gas. Of the total demand in 2009, 61,637 mcm was used for transformation, 8,754 mcm for the industry while 3,605 and 28,999 mcm were consumed by energy sector and other sectors respectively. [1] Transformation includes the generation of electricity, while the demand from the ‘Industry’ refers to gas used for such things like the chemical-, iron and steel- and machinery industry. The demand from the ‘Energy Sector’ refers to gas used for the extraction of coal, oil, and gas and gas used in refineries, coke ovens and gas works.[1]
This section deals with gas reserves and gas imports.
Japan holds some indigenous gas resources, though limited. It hosts approximately 0.02% of the world total reserves, equivalent to 37 bcm of natural gas. Japan produced 3,343 mcm of natural gas in 2010. Given the limited domestic reserves Japan is highly dependent on LNG imports. One of the largest gas fields in Japan is the Minami Nagaoka gas field, located 10 km to the southwest of the city of Nagoaka. It was discovered in 1979 and is operated by INPEX. Annual production of this field is around 1.6 bcm, but production increases every year as the demand for gas increases. Most of the gas from this field is directly supplied to the Tokyo metropolitan area through its pipeline network. [1]
| By country of origin (in mcm) | 2006 | 2007 | 2008 | 2009 | 2010e | %Total 2010 |
|---|---|---|---|---|---|---|
| Australia | 17649 | 16543 | 17044 | 17423 | 18548 | 18.8% |
| Norway | - | 85 | 87 | - | - | - |
| United States | 1578 | 1086 | 979 | 788 | 779 | 0.8% |
| Algeria | 258 | 1327 | 688 | 84 | - | - |
| Brunei | 8950 | 9297 | 8554 | 8376 | 8317 | 8.4% |
| Egypt | 778 | 2278 | 1777 | - | 763 | 0.8% |
| Equatorial Guinea | - | 785 | 1644 | 1882 | 412 | 0.4% |
| Indonesia | 19531 | 19047 | 19529 | 17828 | 18102 | 18.3% |
| Malaysia | 17107 | 18553 | 18675 | 17583 | 20464 | 20.7% |
| Nigeria | 231 | 1428 | 2548 | 326 | 1059 | 1.1% |
| Oman | 4010 | 5179 | 4290 | 3896 | 3725 | 3.8% |
| Qatar | 10789 | 11380 | 11333 | 11206 | 10809 | 10.9% |
| Russia | - | - | - | 6069 | 8369 | 8.5% |
| Trinidad & Tobago | 386 | 839 | 474 | 228 | 155 | 0.2% |
| United Arabic Emirates | 7366 | 7800 | 7769 | 7123 | 7118 | 7.2% |
| Yemen | - | - | - | - | 167 | 0.2% |
| Total | 88633 | 95627 | 95391 | 92812 | 98787 | 100% |
| %Total Consumption | 91.2% | 90.1% | 91.9% | 89.8% | 93.8% | - |
| c = confidential; - = nill; ..= not available Source: Natural Gas Information © OECD/IEA, 2011 | ||||||
| By transport type (in mcm) | 2006 | 2007 | 2008 | 2009 | 2010 | %Total 2010 |
|---|---|---|---|---|---|---|
| Pipeline imports | - | - | - | - | - | - |
| LNG imports | 88633 | 95627 | 95391 | 92812 | 98787 | 100% |
| Total | 88633 | 95627 | 95391 | 92812 | 98787 | - |
| c = confidential; - = nill; ..= not available Source: Natural Gas Information © OECD/IEA, 2011 | ||||||
In 2010, Japan was the third largest importer of natural gas after the United States and Germany. Japan imports its gas from a variety of countries. All imports are transported by LNG ships because no pipeline connection to continental Asia is in place. Most of Japan’s imports originate from Australia, Malaysia and Indonesia. [1]
This section deals with the gas grid, LNG terminals and storage facilities.
Pipelines
Japan has a rather fragmented national transmission pipeline network. Japan does not have any oversea pipeline connections to continental Asia. Instead the country heavily relies on its LNG terminals for the import of natural gas. [1] The transmission and distribution activities are partially privatized. The three largest gas companies are Tokyo Gas, Osaka Gas and Toho Gas. These companies operate their transmission networks under a RTPA for large volume supply since 1999 (Last update: August 2006). [2]
Currently there are 28 operational LNG terminals in Japan. One terminal, Habiki LNG (Saibu Gas) is currently under construction. The start of operations of the Habiki LNG terminal is scheduled for 2014.[1], [2]
| Site | Storage | - | Regasification | - | Owner | Operator | TPA | Start-up | Status |
|---|---|---|---|---|---|---|---|---|---|
| - | #Tanks | Storage cap* | # Vaporizers | Nom.cap** | - | - | - | - | - |
| Chita | 7 | 640 | 11 | 16.6 | Chita LNG | Chita LNG | Yes | 1983 | E |
| Chita Kyodo | 4 | 300 | 14 | 10.4 | Chubu Electric, Toho Gas | Toho Gas | Yes | 1978 | E |
| Chita-Midorihama Works | 2 | 400 | 7 | 9.7 | Toho Gas | Toho Gas | Yes | 2001 | E |
| Fukuoka | 2 | 70 | 7 | 1.2 | Saibu Gas | Saibu Gas | .. | 1993 | E |
| Futtsu | 10 | 1110 | 13 | 27.4 | Tokyo Electric | Tokyo Electric | .. | 1985 | E |
| Hatsukaichi | 2 | 170 | 4 | 1.2 | Hiroshima Gas | Hiroshima Gas | No | 1996 | E |
| Higashi-Ohgishima | 9 | 540 | 9 | 19 | Tokyo Electric | Tokyo Electric | Yes | 1984 | E |
| Himeji | 8 | 740 | 6 | 6.8 | Osaka Gas | Osaka Gas | Yes | 1984 | E |
| Himeji LNG | 7 | 520 | 8 | 11.6 | Kansai Electric | Kansai Electric | Yes | 1979 | E |
| Kagoshima | 2 | 86 | 3 | 0.5 | Nippon Gas | Nippon Gas | No | 1996 | E |
| Kawagoe | 4 | 480 | 4 | 7.5 | Chubu Electric | Chubu Electric | Yes | 1997 | E |
| Mizushima | 1 | 160 | 3 | 1.3 | Mizushima LNG | Mizushima LNG | Yes | 2006 | E |
| Nagasaki | 1 | 35 | 3 | 0.2 | Saibu Gas | Saibu Gas | .. | 2003 | E |
| Negishi | 14 | 1180 | 14 | 15.8 | Tokyo Electric/Tokyo Gas | Tokyo Electric/Tokyo Gas | Negotiated TPA | 1969 | E |
| Niigata | 8 | 720 | 14 | 12.2 | Nihonkai LNG | Nihonkai LNG | Yes | 1984 | E |
| Ohgishima | 3 | 600 | 10 | 13.1 | Tokyo Gas | Tokyo Gas | Negotiated TPA | 1998 | E |
| Oita | 5 | 460 | 6 | 6.6 | Oita LNG | Oita LNG | Yes | 1990 | E |
| Sakai | 3 | 420 | 6 | 9.2 | Kansai Electric | Kansai Electric | Yes | 2006 | E |
| Sakaide | 1 | 180 | 3 | 1.64 | Sakaide LNG | Sakaide LNG | .. | 2010 | E |
| Senboku I | 4 | 180 | 5 | 3.1 | Osaka Gas | Osaka Gas | Yes | 1972 | E |
| Senboku II | 18 | 1585 | 15 | 16.6 | Osaka Gas | Osaka Gas | Yes | 1977 | E |
| Shin-Minato | 1 | 80 | 3 | 0.4 | Gas Bureau | Gas Bureau, City of Sendai | No | 1997 | E |
| Sodeguara | 35 | 2660 | 36 | 43.9 | Tokyo Electric/Tokyo Gas | Tokyo Electric/Tokyo Gas | Negotiated TPA | 1973 | E |
| Sodeshi | 3 | 337 | 8 | 4.1 | Shimizu LNG | Shimizu LNG | .. | 1996 | E |
| Tobata | 8 | 480 | 9 | 10.8 | Kita Kyushu LNG | Kita Kyushu LNG | No | 1977 | E |
| Yanai | 6 | 480 | 5 | 3.3 | Chugoku Electric | Chugoku Electric | Yes | 1990 | E |
| Yokkaichi LNG Centre | 4 | 320 | 8 | 9.7 | Chubu Electric | Chubu Electric | Yes | 1988 | E |
| Yokkaichi Works | 2 | 160 | 4 | 2.1 | Toho Gas | Toho Gas | .. | 1991 | E |
| Hibiki LNG | .. | .. | .. | .. | Saibu Gas | Saibu Gas | .. | 2014 | U |
| Mizushima (expansion) | 1 | 160 | .. | .. | Chugoku Electric | Chugoku Electric | .. | .. | U |
| c = confidential; - = nill; ..= not available E = existing; U = under construction; P = proposed * capacity in m3 x1,000 in LNG **nominal capacity in bm3/y. Source: Natural Gas Information © OECD/IEA, 2011, GIIGNL 2010 | |||||||||
Most of the natural gas is stored in storage tanks linked to LNG receiving terminals. However, Japan does have 5 underground storage sites. All five are located in Niigata prefecture where various oil and gas fields are located. The Sekihara storage facility, not far from the Minami Nagoaka field, was originally a gas producing field but was converted to an underground gas storage after the field was depleted in 1969. The storage site is connected to the, still producing, Minami Nagoaka field.[1], [2]
| Nr. | Facility name | Operator | Storage Capacity (mcm) | Withdraw (mcm/day) | Injection (mcm/day) | TPA | Type |
|---|---|---|---|---|---|---|---|
| 1 | Nakajo | Japan Energy | 200 | .. | .. | .. | Peak Shaving / Emergency Stockpile |
| 2 | Shiunji | JAPEX | 330 | .. | .. | .. | Peak Shaving |
| 3 | Sekihara | INPEX | 250 | .. | .. | .. | Peak Shaving |
| 4 | Kumoide | JAPEX | 350 | .. | .. | .. | Emergency Stockpile |
| 5 | Katakai | JAPEX | 1001 | .. | .. | .. | Emergency Stockpile |
| Total | - | - | 2140 | - | - | - | - |
| TPA: Regulated ( R) - Negotiated (N) - Hybrid (H) - Not Applicable (X) Source: Yoshizaki, K. et al (2009) | |||||||
- 1. Natural Gas Information © OECD/IEA, 2011
- 2. Yoshizaki, K. et al (2009) Utilization of underground gas storage (UGS) in Japan
This section deals with the gas market regulation in upstream, the transmission grid and downstream.
The upstream sector is partially privatized. The indigenous gas production in 2010 accounted for 3.3 bcm, while approximately 94% of the total gas demand was met by LNG imports. Many of the current LNG import contracts, subscribed from the 1970s and 1980s, are not flexible and tied to prices for crude oil for fifteen to twenty years. From 2001 Tokyo Gas, Osaka Gas and Toho Gas started to sign new binding contracts or renovated their based load contracts on more flexible terms for the producer. All three companies are vertically integrated private companies. [1], [2]
There is no nationally integrated transmission pipeline network in Japan. The transmission and distribution activities are partially privatized. The three largest gas companies are Tokyo Gas, Osaka Gas and Toho Gas. These companies operate their transmission networks under a RTPA for large volume supply since 1999. [1]
The downstream sector is partially privatized. Most of the LNG imports (approximately two-thirds in 2004) are used for electrical power generation or as feedstock for petrochemical plants, while the remaining third is used for domestic consumption. A majority of Japan’s urban areas is not served by a natural gas distribution system. Private companies represent 97% of the market. The remaining 3% is supplied by publicly-owned companies. Main private players are Tokyo gas (75%), Osaka gas (36%) and Toho gas (8%).[1]
Suggest reference
Comments
add comment