Tokyo Weighs Restarting LNG Carrier Construction to Preserve Nuclear Technology
Kansai Electric Power carried out geological surveys around its Mihama nuclear plant in Fukui Prefecture in November 2025 to advance reconstruction work. Separately, the Japanese government has decided to include the restart of domestic LNG carrier construction in its growth strategy, after Japan recorded no deliveries since 2019 and lost its once-leading position to cost-competitive Asian rivals. Tokyo is considering technical cooperation with South Korea.
Kansai Electric Power conducted geological surveys around the Mihama nuclear power plant in Mihama Town, Fukui Prefecture, in November 2025 to advance the plant's reconstruction. The surveys aim to obtain geological data required for the reconstruction work.
As a resource-poor nation, Japan has long lacked LNG carrier construction technology, one of the essential capabilities for its energy security, which is needed to import liquefied natural gas (LNG) from overseas. Japan was once a world-leading shipbuilding power and led the LNG carrier segment, but lost out to Asian competitors with stronger cost competitiveness. Since the delivery of its last vessel in 2019, the country has recorded no domestic construction.
In July, the government decided at a Cabinet meeting to include the restart of domestic LNG carrier construction in Japan's growth strategy, and is considering seeking technical cooperation from South Korea, which holds the world's largest market share.
Why this event matters
The event has a measured impact on 2 industrys. The strongest current signal is positive for Shipbuilding, with intensity 70/100 and 60% confidence over a medium term horizon.
Shipbuilding
- Direction
- positive
- Intensity
- 70
- Confidence
- 60%
- Horizon
- Medium term
Nuclear Power
- Direction
- neutral
- Intensity
- 30
- Confidence
- 70%
- Horizon
- Short term
Impact figures are analytical estimates that combine direction, intensity, confidence and event importance. They are not investment advice.