Roland Berger has published the Japan edition of its report, “The Global Gas Game (Japan Edition): Portfolio Design Capabilities Tested by a Changing LNG Market.” The report highlights the importance of designing operations to respond to volatility in the LNG market and a strategic shift toward prioritizing quality over volume.
Japan’s LNG business has developed on the basis of long-term contracts and a stable supply infrastructure. However, the market environment is changing significantly amid rising geopolitical risks, the expansion of renewable energy, and growing linkages between the European and Asian markets. The global nature of the market is becoming more pronounced, with individual events in one part of the market immediately affecting prices worldwide and cargo supply and demand.
The report analyzes how LNG strategies centered on “securing volume” are shifting toward “quality of function” to support a volatile energy system. It examines from multiple perspectives the portfolio strategies that Japanese companies should develop.
Among its key points, the report states that LNG’s role is evolving beyond securing a stable supply to providing flexible functions, and that competitiveness will be determined not only by optimizing individual contracts and transportation but also by designing an integrated portfolio of diverse contracts and assets. It also points to a direction for the clean-gas sector that makes use of expertise in existing procurement, transportation, contracting, and demand development.
The report calls for the development of an operating platform capable of responding flexibly to changes in demand and the market while securing resources. It encourages a redefinition of the value-creation process, from upstream and infrastructure investment through trading. The authors are Toyama Koji (遠山浩二), Partner, and Yoshimi Nozomu (吉見望), Principal, and their analysis is intended to help strengthen the competitiveness of Japanese companies.