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Japan seeks Brunei for gas supply

Ubaidillah Masli
The Brunei Times
Publication Date : 09-02-2012

Disater-struck Japan welcomes any liquefied natural gas (LNG) supply that Brunei can spare to help the country cope with an estimated 10 per cent deficit in power supply it expects to face this summer, a senior official from the Japanese premier's office told foreign journalists here yesterday.

Deputy Cabinet Secretary for Public Affairs Noriyuki Shikata said last year's March 11 earthquake and ensuing tsunami disaster, which caused the world's worst nuclear radiation leak after Chernobyl fallout, has yet to impact Japan's power supply "so far".

"We have not seen any incident of any power blackouts," he said, adding that the supply has been stable during the winter months.

"But we are facing the challenging situation this coming summer. The government estimates last fall suggested there is still a 10 per cent gap (in power supply and demand) and how we would fill the gap is the real issue we are facing in the short term."

Japan had previously set a target of increasing the proportion of power supply produced by nuclear generation from about 30 per cent to over 50 per cent, with the construction of more plants, by 2030. However, after the March 11 disasters caused the meltdown of the Fukushima Daiichi atomic plant, mounting public concern forced the government to consider an "overhaul" of its energy policy.

Presently, only three of the Pacific Ocean archipelago's 54 nuclear power facilities are in operation, as the Japanese government re-assesses the costs of its nuclear energy development, Shikata said.

"In Japan, the cost-estimate has always indicated that nuclear power is much cheaper than for example, renewable energy," he explained to reporters taking part in a Japan foreign ministry-hosted programme to raise awareness on the country's recovery efforts.

Shikata said that this time, the government was weighing in other costs such as compensation for nuclear fallout, damage to the environment, and nuclear waste disposal. "This adds to the costs side."

To compensate for the loss of power generated from nuclear sources, Japan was re-focusing its efforts in promoting renewable energy development and cutting down electricity consumption through improving energy efficiency measures, he added.

The deputy cabinet secretary, however, conceded "in the short-term, it is unrealistic to significantly increase (the) proportion of renewable energy".

Therefore, Japan planned to import more LNG "as a short-term measure".

"We do have real challenges facing us, and as a short-term solution, the increased import of gas is very, very important," Shikata said.

As a provider of one-tenth of Japan's LNG requirements, Brunei's assistance in filling the gap was welcomed.

"Of course, we welcome Brunei's support in this arena. We are importing more LNG and if you have extra capacity, we really appreciate your kind support," said the deputy cabinet secretary, who is also Japan's Global Communications Director.

The Sultanate previously acceded to Japan's request for shipments of Brunei LNG to be front-loaded, shortly after the March 11 disasters, diverting shipments that were initially bound to South Korea, another major importer of LNG from Brunei.



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