Japan is completing steps to launch a derivatives market for Liquefied Natural Gas (LNG). While oil has long been traded in both spot and future markets, LNG remains very much the province of long-term fixed-price contracts. Japan is one of the biggest consumers, accounting for some 40% of world imports.
“Joining the Trans-Pacific Partnership negotiations is a far-sighted policy,” declared Prime Minister Shinzo Abe to his Cabinet and journalists on Friday, “Japan should play a leading role toward a year-end deal.” The prime minister may be exactly right, but the fact is that very few independent observers have any firm basis for making a judgment. Not only are the TPP talks highly complex, they are also secret and moving very quickly.
The results of Sunday’s House of Councillors election are a foregone conclusion in light of the electoral district system and the number of candidates run by each party. The ruling coalition of the LDP and New Komeito will win a strong majority in the upper house but cannot possibly win on their own the 2/3 majority required for constitutional revision. What we will have when the Diet next opens will be the Abe government popular with the public and in firm control of the parliament.
“We Want to Go Fishing!” was the slogan of a rally organized by the National Federation of Fisheries Cooperative Associations (JF Zengyoren) in Tokyo on May 29. As the yen falls, so the price of fuel is soaring and reaching a level that some fishermen say they can no longer endure.
Some of the shine has come off Abenomics in the last month or so, perhaps representing little more than a hiccup on the way to greater success, or perhaps representing the vast turning of the tide.
For several months we had been thinking that the success of the Nuclear Regulation Authority, or NRA, might represent one of the truly under-appreciated stories of 2013. For most of the anti-nuclear crowd the NRA could never really win much admiration because they dispute a fundamental premise upon which this organization was built — that nuclear energy could ever really be safe in earthquake-prone Japan no matter how strict the regulations.
The third consecutive Japanese prime minister has embraced the Trans-Pacific Partnership (TPP), and this time it is probably for real—at least as far as entering the negotiation process goes. Prime Minister Shinzo Abe used his much-awaited visit with US President Barack Obama to crow a little bit about how he was “restoring” the US-Japan Alliance after the three dark years of the Democratic Party of Japan.
In the midst of Japan’s energy woes, prompted by the Fukushima disaster and reinforced by the uncertainty arising from the tensions in East Asia, the arrival for the first time of a Liquefied Natural Gas (LNG) tanker through the Arctic Ocean and into the Pacific Ocean offers hope and the chance to diversify away from the sea lanes Tokyo currently relies upon for the bulk of its energy imports. This is possible thanks to the gradual melting of Arctic Ocean ice, technological developments, and Russia’s policy of energy export diversification.
After about a year of hanging about in the background, the issue of Japan’s participation in Trans-Pacific Partnership (TPP) negotiations was suddenly thrust back into the front rank of political debate. Prime Minister Yoshihiko Noda has been in favor of Japan’s participation in TPP negotiations all along, as was his predecessor Naoto Kan. However, it appears that Noda decided to soft-pedal the matter late last year as he faced the daunting challenge of raising the national consumption tax, a divisive issue within the ruling party that he saw as the bigger priority.
The long string of incidents off the Senkaku-Diaoyu Islands this summer and the wider maritime territorial disputes in East and Southeast Asia have been overshadowing a major development with great potential implications for Japan: The northern sea route, linking East Asia with Europe through waters traditionally closed by ice to commercial navigation, are increasingly accessible during the Arctic summer thanks to the global warming.