The shift aims for LNG-fired power generation to fall by roughly half this decade, creating upheaval for Japanese utilities as well as suppliers from Qatar to Australia to the U.S. ; The stricter guidelines will see Japanese imports drop by a third by the end of the decade, according to traders and analysts, according to The Japan Times. It will force domestic utilities to abandon long-term LNG deals, which have been the backbone of the nation's imports, while increasing dependence on the more turbulent spot market. The country, the world's top LNG importer, called for more renewables such as wind and solar to replace natural gas in a revised plan released last week. The move will further dampen Japanese LNG buyers' appetite to sign long-term deals that extend beyond 2030, which could leave them more exposed to short-term price dynamics if demand ends up higher than targeted, said Saul Kavonic, an energy analyst at Credit Suisse Group AG. The policy was a surprise to suppliers around the world. Until recently, Japan had been touting the super-chilled fuel as a cleaner alternative to coal. Natural gas once widely seen as the bridge to a green future has been falling out of favor with some governments as they boost efforts to slow climate change and the cost of renewables drops drastically. (news.financializer.com).
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