Japan’s JBIC to offer JERA $674 mln of loans for LNG
The state-owned Japan Bank for International Cooperation (JBIC) said on Monday it would offer 100 billion yen ($674 million) in loans to JERA, Japan’s biggest power generator, to help secure liquefied natural gas (LNG) amid fears of tight global supply.
“The loan is aimed at supporting JERA’s import of LNG to secure a stable supply of electricity by ensuring a stable energy flow to Japan,” the JBIC said in a statement.
Japan wants to avoid an energy crunch by offering financial support before winter, when heating demand is expected to increase, and as utilities face the risk of disruption to supply from Russia due to its invasion of Ukraine.
Resource-poor Japan has been implementing various steps to secure LNG, including contingency plans to allow state-owned Japan Oil, Gas and Metals National Corp (JOGMEC) to buy the fuel in case of emergency and to allow the government to order large users to limit use of city gas when shortages risk adversely affects the national economy and people’s lives.
Source: Reuters (Reporting by Yuka Obayashi Editing by Mark Potter)