Now that Japan is totally without nuclear power, having shut down its last working nuclear reactor over the weekend, producers of liquefied natural gas (LNG) ought to brace themselves as the country shifts to import more of the said commodity to fuel its energy needs.

Japan's LNG demand alone, according to data from the International Energy Agency (IEA), will jump by 24 per cent on levels before the meltdown of reactors at the Fukushima Dai-ichi plant after the earthquake and tsunami in March last year. The IEA forecast Japan would procure 87 million tonnes of LNG this year, compared from the 70 million tonnes in 2010.

Masayuki Naoshima, vice-president of the Japanese upper-house, a former Minister of Economy, Trade and Industry and senior member of the ruling Democratic Party of Japan, who arrived last week in Australia to hold talks with the Prime Minister, Julia Gillard, had attested to the present reality of Japan's unstable energy grid. Australia has been eyed to seriously and constantly supply LNG to the world's third economic leader.

''Australia is one of the most important countries for Japan in terms of natural resources supply,'' Naoshima told BusinessDay. ''After the earthquake, our demand for LNG have increased ... our investment in natural resources will increase in the future.''

Although Japan has no plans to permanently exit from the use of nuclear energy, the country is slowly working on diversifying its energy mix.

''Nuclear energy is necessary in Japan for electricity generation. However, after Fukushima, we need to reconsider Japan's energy source mix ... LNG is expected to grow in its importance as an energy source,'' Naoshima said.

Japan has a total of 50 nuclear reactors scattered all over the country. After the March 2011 earthquake and tsunami that led to the meltdown of reactors at the Fukushima Dai-ichi plant, the Japanese government immediately undertook a series of stress tests on all nuclear power plants. Although some had been granted approval to go online again, the consensus of the population and local government at which the particular nuclear reactor is located must first be secured. So far, none of the previously suspended nuclear reactors have been allowed to operate again.

Over the weekend, the Hokkaido Electric Power shut the third unit at its Tomari plant in northern Japan. The occasion marked the first time Japan is without nuclear power since the 1970s.