Raising the stakes

Low prices and a strong yen give Japanese firms an opportunity to buy abroadWHEN Energy Frontier, an enormous tanker, glided into Tokyo Bay on April 6th from Sakhalin Island, she was not just carrying the first shipment of liquefied natural gas (LNG) from a problematic Russian venture, under a deal signed 15 years ago. She was also bearing the symbolic weight of Japans aspirations to greater energy security. Lacking natural resources, Japan imports more than 95% of its energy. Almost all its oil and a quarter of its LNG come from the Middle East. To reach Japan ships must travel for 20 days, passing near pirate-infested waters. Sakhalin, by contrast, is just three days away.In 2006 the Japanese government called on industry to increase its ownership of foreign energy projects to cover 40% of Japans energy needs, up from 15% at the time. The idea was to make the country less dependent on the spot market in case of trouble by taking stakes in various energy projects around the world. But as prices soared and China became a keen buyer, slow-moving Japanese firms found themselves being shut out of deals. ...