Japan will have created world's first LNG futures exchange by March 2015

Japan plans to launch the world's first futures exchange for liquefied natural gas by March 2015. This was announced by representatives of the Ministry of Economy, Trade and Industry of Japan, reports Reuters. According to him the need to create their own futures market for LNG is explained by the need of a balanced pricing in the conditions of rising demand for energy and the need to improve energy stability.

A number of Japanese companies including Inpex, Mitsubishi Corp., JX Nippon Oil & Energy, Tokyo Electric Power Co. and Tokyo Gas take part in LNG futures exchange project.

The Ministry of Economy, Trade and Industry of Japan added that the country hopes to create affordable LNG futures market for the major Asian buyers, including South Korea and Taiwan. Representatives of the Japanese authorities have appealed to the authorized agencies of Singapore and the U.S. to organize a similar to Japanese LNG futures exchanges.

Japan is the largest importer of LNG in the world (it imports 96% of its gas as LNG, ranking first place in the world in its procurement). Herewith, the country ranks fourth place in the world in volumes of energy consumption. Japan's LNG needs have increased dramatically due to the accident at the nuclear power plant "Fukushima" -1 in March 2011 and the subsequent rejection of nuclear power.

The Russian LNG which is now about 9% of the annual natural gas imports acquires an increasing value for Tokyo. In the 2011 fiscal year LNG consumption in the country was 83 million tons. The gas share in the energy consumption is currently 14% and will increase as experts say.