Nuclear Reactors Restart in Japan Reduce LNG Imports for Power Generation

By IndraStra Global News Team

Cover Image Attribute: The aerial photo of reactor Nos. 1 and 2 at Kansai Electric Power Co.'s Takahama nuclear power plant in Takahama, Fukui Prefecture | Source: KYODO
 
In Japan, the restart of nuclear reactors has significantly impacted the country's energy landscape. The resumption of operations at some of its nuclear power reactors has reduced the reliance on liquefied natural gas (LNG) imports for electricity generation, primarily used to compensate for the lost electricity generation following the 2011 Fukushima Daiichi accident. As per the U.S. Energy Information Administration (EIA), this decision has led to a notable decrease in LNG imports.

Following the Fukushima disaster, Japan decided to suspend operations at all its remaining 48 nuclear power reactors by 2013. This led to a heavy reliance on imported natural gas to meet the nation's electricity demands. However, in 2015, Japan began gradually allowing some nuclear reactors to resume operations. By December 2022, 11 gigawatts (GW) of Japan's nuclear capacity had been returned online, decreasing LNG imports for electricity generation.


Chart Attribute: Trade Statistics of Japan Ministry of Finance (財務省貿易統計) / U.S. Energy Information Administration (EIA)

Note: Others represent Algeria, Angola, Belgium, Brazil, Brunei, China, Egypt, Equatorial Guinea, France, Indonesia, Mozambique, the Netherlands, Nigeria, Norway, Oman, Peru, Qatar, Singapore, South Korea, Spain, Thailand, Trinidad and Tobago, Türkiye, the United Arab Emirates, the United Kingdom, and Yemen.

Since 2015, the increasing contribution of nuclear generation has been steadily replacing generation from fossil fuel sources, primarily natural gas. As a result, Japan witnessed a significant decline in LNG imports in 2022, amounting to a 15% decrease or 1.7 billion cubic feet per day (Bcf/d) compared to 2015. This trend is expected to continue in the coming years, with further reductions anticipated in LNG imports into Japan.



Chart Attribute: U.S. Energy Information Administration, International Energy Statistics; Nuclear Regulation Authority Japan (原子力規制委員会)

In 2023, Japan took further steps to bolster its nuclear energy sector by restarting Takahama Units 1 and 2, adding approximately 1.6 GW to its nuclear capacity. Additionally, Japan passed the GX Decarbonization Power Supply Bill, signaling its commitment to establishing a decarbonized electricity system, with nuclear power designated as the primary component of the country's baseload electricity.

However, the process of nuclear restarts has been slow since 2015. Japan has restarted 12 units, accounting for 11 GW of operating nuclear capacity. Furthermore, there are 10 additional units under review, and 5 more have passed review but have yet to restart.

Japan's approach to nuclear restarts has been cautious, focusing on restarting pressurized boiling water reactors (PWR) rather than boiling water reactors (BWR) due to public safety concerns. The Fukushima Daiichi plant, a BWR facility infamous for the 2011 disaster, and its sister plant, Fukushima Daini, are being decommissioned as part of Japan's nuclear energy strategy.


Chart Attribute: Institute of Energy Economics Japan /(一財)日本エネルギー経済研究所, International Atomic Energy Agency (IAEA)

Note: PWR=pressurized boiling water reactor, BWR=boiling water reactor, NRA=Nuclear Regulatory Authority Japan

Despite the strides in nuclear energy, Japan faces challenges due to its limited domestic energy resources, leading to heavy reliance on imported fossil fuels for electricity generation. In 2022, fossil fuels accounted for 71% of Japan's electricity generation, with natural gas comprising 35% of that share. However, the decline in LNG imports indicates a gradual shift away from fossil fuel dependency as nuclear reactors return online.

Japan's LNG imports primarily come from a diverse range of long-term contracts, with Australia emerging as the largest supplier for 11 consecutive years. However, Japan's LNG import landscape has changed, with Qatar's share decreasing from 18% in 2012 to 4% in 2023. In 2023, Malaysia emerged as the second-largest LNG supplier, accounting for 16% of imports.
  
With reporting by the U.S. Energy Information Administration (EIA)

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IndraStra Global: Nuclear Reactors Restart in Japan Reduce LNG Imports for Power Generation
Nuclear Reactors Restart in Japan Reduce LNG Imports for Power Generation
By IndraStra Global News Team
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