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Japan - Natural Gas Demand Will Grow



  • Japan shut down most of its reactors after the devastating 2011 earthquake and tsunami.
  • The country which traditionally favors renewable energy has had to turn towards coal to make up for the energy demand of its population.
  • As a result, Japanese natural gas demand should grow and become a more integral part of its energy generation.


Japan has a history of being a country that is progressive and focused on modern technology. The country currently has a population of over 100 million along with an oil consumption or more than 4 million barrels per day.

Japan - Cox and King

As a progressive country, Japan tends to keep its fossil fuel usage at a minimum. The majority of the company's energy came from nuclear power before 2011 and since has come from a variety of renewables along with oil and natural gas.

However, as the country begins to look towards cleaner sources of energy, I expect it will begin to phase out the highly polluting coal and oil it currently uses and instead turn to natural gas as a cleaner longer term source of energy.

Oil and Coal Usage

Let us begin by talking about the country's current usage of oil and coal for its power consumption.

Japan Primary Energy Consumption - Euan Mearns

The above image shows Japan's sources of power. The majority of the company's energy consumption currently comes from oil which became rapidly popular during the late 60s and early 70s. However, in recent years, in conjunction with coal, both natural gas and other renewables have become increasing popular with coal and gas making up much of the shortfall from the shutdown of reactors in 2011.

Projected Natural Gas Consumption Japan and China - EIA

At the same time, Japanese natural gas consumption is expected to continue growing at a relatively slow rate. The country's natural gas consumption is expected to grow by 50% over the coming decades from 2010 - 2040. However, I expect the country's natural gas consumption to grow even quicker.

Population and Energy Trends

Now that we have talked about the country's usage of a variety of different

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