FX.co ★ Japan offers Europe supply of natural gas

Japan has offered help to Europe in case its supply of natural gas is disrupted. Trade Minister Koichi Hagiuda said the government is already considering how to contribute to the global community, explaining that over the past few years, the country has been a driving force in the development of the international LNG market.

Being one of the most resource-poor countries in the world, Japan is deemed as the world's largest LNG importer. That is also why Hagiuda said the government will supply local demand first before sharing LNG with Europe. "We will see if there is anything that can be done after ensuring that the people's lives are not affected," the trade minister said.

Earlier this year, the US approached Qatar, the world's largest LNG exporter, about whether the country could divert some supplies to Europe in the event of a disruption. But Qatar is fully booked in long-term contracts - the same ones the EU has shunned in favor of buying natural gas on the spot market.

The US itself cannot help with more LNG because it also has other buyers in other parts of the world. There is also the problem of limited LNG import capacity in Europe itself, which makes increasing LNG imports completely useless.