METI: Cabinet Decision on the Bill for Partial Revision of the Gas Business Act and the Act on Japan Organization for Metals and Energy Security

A Cabinet decision was made on the Bill for Partial Revision of the Gas Business Act and the Act on the Japan Organization for Metals and Energy Security (JOGMEC). The bill will be submitted to the 210th session of the Diet.

1. Purpose of this bill
Demand for the liquefied natural gas (LNG) used in manufacturing gas is growing worldwide, and against the backdrop of supply disruptions caused by changes in the international situation and unpredictable accidents, competition between countries to acquire LNG has intensified, soaring prices of LNG to historic levels. Given the increasing unpredictability of the LNG market, METI will take measures from the viewpoints of both supply and demand in the event that a serious disruption occurs in the gas supply.

2. Outline of the bill
(1) Partially revises the Gas Business Act
Takes measures to enable the Minister of Economy, Trade and Industry to request that the JOGMEC procure LNG in the event that there is or may be a problem in securing a stable supply of gas
Takes measures to enable the Minister of Economy, Trade and Industry to order or recommend certain heavy consumers to restrict their gas usage in the event that gas supply and demand are tight and a gas supply shortage is likely to adversely affect the national economy and people’s lives if the supply and demand are not adjusted

(2) Partial revision of the Act on JOGMEC
Adds procurement of LNG to JOGMEC’s operations in response to a request from the Minister of Economy, Trade and Industry in accordance with the provisions of the revised Gas Business Act.