Japan Considering Ways to Build Stronger LNG Buffer as Supply Fears Continue

Wanna be sure you get the gas when you need it? Over contract and then get rid of the overspill. Dump it onto the international market, dump it onto markets that have underground storage. The only alternative you have is building very large LNG tanks and keeping it liquid as Japan does not have the geology for underground storage. Thats very pricey so the loss you take from dumping excess is to be held against the cost of liquid long-term LNG storage. That should not be a hard calculation for a sophisticated player like Japan. 

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