EU and Japan to reinforce energy cooperation through a dedicated dialogue on global LNG architecture

The EU and Japan have today reached a consensus to strengthen their energy cooperation by establishing an EU-Japan energy security dialogue on global liquefied natural gas (LNG) architecture. The dedicated dialogue will focus on three pillars: global security of supply, transparency of markets and reduction of methane emissions in the LNG supply chain, reinforcing the EU’s strategic energy partnership with Japan. The parties met today during the 2023 LNG Producer Consumer Conference which is currently taking place in Tokyo.

The decision to establish this dialogue follows the EU-Japan Summit on 13 July 2023 in Brussels. As two of the largest importers of liquefied natural gas (LNG), the leaders agreed to step up cooperation in order to develop secure and transparent global LNG markets, while reducing methane emissions in line with the Global Methane Pledge.

On global LNG security of supply, the dialogue will facilitate collaboration on a global early warning system. The EU and Japan will build on their decade-long expertise in developing resilient energy security policies based on cooperation between regions and countries to pre-empt and eventually tackle energy crises. The EU will also share its security framework, strengthened during the 2022 supply shock, supported by a pan-EU gas storage policy and the gas demand aggregation tool, AggregateEU. In addition to bilateral cooperation, Japan and the EU will pursue engagement with the International Energy Agency (IEA) and proactively contribute to discussions on the IEA's role in the gas sector.

The parties see the transparency of energy markets as the backbone of the security of supply and therefore believe that it should be part of the future global LNG architecture. To this end, there is a need to enhance the exchange of critical data of relevance for energy security across the consuming and producing regions. Already today, the EU is a world leader in providing comprehensive information on its electricity and gas systems. Since 2022, the EU has further improved transparency with respect to LNG terminals, price indices and gas storage with European Transparency Platforms and the ACER LNG benchmark.

From a climate perspective, the EU and Japan will continue collaborating on reducing methane emissions in line with the Global Methane Pledge and the Joint Declaration from Energy Importers and Exporters on Reducing Greenhouse Gas Emissions from Fossil Fuels. Through this framework, they will cooperate on monitoring, reporting and verification of methane emissions and promote abatement measures, contributing also to enhancing energy security globally.

The EU-Japan dedicated dialogue project is a step towards a more secure and sustainable energy future. By working together, the EU and Japan are demonstrating their commitment to finding global solutions to global challenges. The initiative is open to cooperation with other partners who share the same vision of a secure and sustainable energy future.

The 2022 energy crisis highlighted the need for a global solution to ensure the achievement of both energy security and decarbonisation objectives based on shared values and a commitment to multilateralism. In response to concerns about shortages of natural gas in the EU and requests to divert LNG to Europe, Japan showed solidarity as long as the stability of its own supply was ensured. The EU and Japan continue to support initiatives to ensure global energy security and will explore avenues for closer cooperation on the security of supply and flexibility solutions that will aim to deliver the appropriate support based on the G7 Communiqué.