The current instability in Asia's energy sector is intensifying due to production disruptions and restrictions on shipping routes. However, supply chain interruptions may also encourage closer cooperation among countries in the region that are experiencing energy shortages.

Japan pursues an energy security policy based on indirect participation and the stimulation of domestic investment in international projects through the Japan Organization for Metals and Energy Security (Jogmec). This approach is linked to the country's lack of significant oil and gas reserves for independent development.

Jogmec aims to ensure sufficient energy supplies and increase Japan's share in oil and gas projects by providing financial support in the form of equity financing, capital, and guarantee obligations. The agency is also prepared to support projects related to liquefied natural gas (LNG), including floating storage and regasification units, which contribute to the development of the LNG market and energy supply stability in the region.

Currently, Jogmec has not announced any specific new projects but is considering support for initiatives such as the construction of floating regasification terminals (FSRU) in the long term.

Jogmec has already provided equity financing and credit guarantees for several major projects in Australia, such as Scarborough (operated by Woodside) and Ichthys (operated by Inpex). Beyond the Asia-Pacific region, the agency supports Mitsui & Co's participation in the Mozambique LNG project through the Mitsui E&P Mozambique Area 1 joint venture since 2019.

Jogmec's activities go beyond traditional financial support for oil and gas extraction and storage. The agency collaborates with international producers, offering analytical and technical services to both Japanese and foreign partners. Its partners include national oil companies from ASEAN countries, such as Petronas, Pertamina, PTTEP, and PetroVietnam.

This year, Jogmec has signed several cooperation agreements in the energy sector with Malaysia's Petronas, the Geological Survey of India (GSI), and Indonesia's Padjadjaran University.

In response to changing political needs, Jogmec expanded its scope in 2022 by adding carbon capture and storage (CCS) and hydrogen projects to its diversification strategy. In the long term, the agency plans to integrate carbon emission reduction into exploration and production projects through methane emission reduction contracts, increased use of natural gas, and the adoption of alternative energy sources such as green and blue hydrogen.

Amid the conflict in the Middle East, it is noted that Japan's energy policy and focus on energy security have remained unchanged since the 1970s. Many Asian countries depend on crude oil supplies from the Middle East, but the Japanese market maintains stability thanks to national oil reserves and the development of alternative procurement sources.

This year, the Japanese government launched the POWERR Asia initiative to help regional partners develop strategic reserves.

Building resilient supply chains is seen as a key element of energy security not only within the region but also in cooperation with the United States and Middle Eastern countries. Japanese companies continue to show interest in exploration, production, and LNG opportunities in the Middle East, as well as exploring prospects in the US and African countries.

Ensuring energy security requires international cooperation, and Japan is committed to building long-term partnerships throughout the region.