Japan reduced gas‑fired power generation in June, cutting LNG imports by approximately 7% as utilities substituted coal for more expensive liquefied natural gas. The change signals a potential rebalancing of Japan’s energy portfolio, impacting LNG markets, coal consumption, and the country’s emissions trajectory. Japanese electric utilities, LNG suppliers, coal producers, and energy regulators monitoring fuel‑mix shifts. Utilities may continue to favor coal if LNG prices stay high, while policymakers could review incentives for gas or renewables to meet climate goals. Data shows Japan's gas‑fired generation dropped in June, with LNG imports down 7% month‑on‑month as power companies favor coal despite elevated LNG prices. The move comes even as reports indicate improving shipping flows through the Strait of Hormuz, which could ease supply concerns. Analysts note the shift may affect long‑term LNG demand and utility fuel‑mix strategies.
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