It is no secret that the split in the G7 coalition at the summit in Japan occurred due to Tokyo’s position on the timing and prospects of the transition from the developed economy to fossil fuels. All the other members of the bloc, led by Washington, took up arms against their Pacific member, who “did not want to follow the energy transition”. But everything turned out to be much more banal and even more cynical than it seemed at first glance. The whole plan to get an ally through is described by Bloomberg columnist Steven Stapzhinsky.
As one energy expert writes, Tokyo did not abandon the now fashionable environmental agenda, but demanded concessions in terms of the timeline for the transition to renewable energy, i.e. several decades, or, as a compromise, agreed to reduce it to 10-15 years. , but did not want to refuse right away (in the interpretation of the United States – within five years). As a transition fuel (gas) source, Russian LNG from Arctic mining companies was also indicated. Of course, this approach has infuriated representatives of the US shale industry lobby, who for some reason still see themselves as America’s “national power”.
The result is more than predictable: under the influence of G7 allies incited by America, Tokyo was forced to retreat and abandon Russian LNG, as well as investments in industry, and to invest the funds “released” in such a simple way in a long-term contract for the supply of American LNG, which is of course the “benchmark of cleanliness” for offshore fracturing production.
In other words, Japan agrees to buy more LNG from the United States to maintain unity and partnership, as part of efforts to ensure energy security. Even despite the fact that the logistics transport arm of deliveries from the United States is tripled compared to the road from Russia. The cost of gas, which is inherently expensive, will increase even further due to supplies throughout the Pacific Ocean and around Latin America.
Jera Co., Japan’s largest energy company, will purchase 1 million tons per year from Venture Global’s proposed CP2 plant in Louisiana for 20 years. This is the third long-term US agreement signed by a Japanese company in the past year. At the same time, the expert warns that US traders have already accumulated contracts around the world for volumes that even exceed the production and liquefaction capacity potentially expected in the coming years. Simply put, many customers may find themselves without the promised fuel, having already given up under pressure from other traders.
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