Mr. Ozaki has been Chairman of Osaka Gas since April 1, 2015. Before the current position, he was President of the company for seven years.

After joining the company in 1972, Ozaki has had wide-ranging experiences in such business fields as LNG procurement, corporate planning, LNG terminal operations, and gas marketing.

Mr. Ozaki also has international business experiences as a European representative based in London between 1984 and 1987 as well as manager of LNG procurement and international affairs. After his appointment as member of the board in 2002, he was seconded to the Japan Gas Association for three years as managing director for technical and international affairs. He was appointed Managing Director and Head of the LNG Terminal & power Generation Business Unit in 2005, and Head of the Commercial & Industrial Energy Business Unit in 2007.

Outside the company, Ozaki serves as chairman of the Japan Gas Association (since June 2013) and vice chairman of the Osaka Chamber of Commerce and Industry (since March 2013).

1. How has the decline in global oil prices affected the global LNG landscape?

Asian LNG prices are mainly indexed to crude oil prices, hence LNG prices have declined. In a short term, this is a relief for consuming countries like Japan who suffered trade deficit due to high energy prices. In medium and long term, however, high price volatility may significantly affect the viability of LNG upstream projects – as well as end-users’ decision to convert to natural gas. A new LNG pricing mechanism based mainly on the supply and demand of LNG itself may be helpful for upstream and downstream investment.

2. How will Japan’s move to restart its nuclear reactors impact the country’s LNG outlook and its energy security?

The first reactor has restarted last month and a few more are expected to follow suit. Nuclear generation will certainly reduce dependence on LNG for power generation. Japan’s latest “Long-term Energy Supply and Demand Outlook” emphasises further energy efficiency and the diversity of energy sources. Nuclear with stringent safety standard will continue to play an important role in the Japan’s energy mix. There are also ambitious plans to expand renewables’ share in the energy mix.

LNG is, therefore, expected to play a modulating role to fill the gap as nuclear and renewable capacities continue to develop. The demand of LNG in Japan is expected to be in the range of 65 to 70 million tonnes in year 2030, a sizable reduction from 88 million tons in 2014.

3. What is your outlook for LNG in Asia and are there any trends you see emerging?

Natural gas will play a decisive role as a fuel for economic development in Asia, because of its cleanliness, efficiency in use and abundance. Indigenous natural gas resources will not suffice in meeting the strong energy demand in the region. It is vital for energy consumers in the region to secure the import of natural gas at a price that the market can afford.

The future potential supply to the region will come from Australia, Middle East, East Africa and US. The challenge is whether those resources can be developed in a mutually satisfactory way, in terms of economics, both for producers and consumers. It will require more than conventional wisdom to establish a mutually agreeable pricing and risk sharing. Solutions may include creating a common gas market that is transparent and has ample liquidity, so sellers and buyers are confident dealing in it.

4. How can Japan collaborate with countries in Asia to increase energy security and meet the region’s rising energy demand?

It is very important to have a system to accommodate the exchange of oil and/or gas among countries in the region. Japan is well-positioned to facilitate this, considering its quantity and diversity of energy sources. Since Japan is a significant LNG importer in the region, with an appropriate scheme to divert an LNG vessel from one port to the other, Asian importers can mutually enjoy more flexibility and security of the LNG supply. If we can further our co-operation in gas production, transportation or marketing, our ties will become stronger and tighter. While this is challenging, we are moving towards this goal step by step.

5. What is Osaka Gas’s long-term strategy for Asia, as you continue to apply your knowledge, expertise, and networks across the entire spectrum of the energy value chain?

Osaka Gas’ core business and strength is gas utilization and marketing. We have accumulated vast gas-related knowledge, experience and expertise from a burner tip to a gas well. We see promising opportunities in Asia’s rapidly growing gas market to provide our various capabilities in natural gas and contribute to making the market more efficient in energy use. Osaka Gas will continue to seek business opportunities in pipelines, LNG terminals, power generation as well as energy marketing and energy solution services. We are currently engaged in marketing-related activities in Singapore.