Japan's gas and power markets are at the start of a shake-up as liberalisation commences. Increased competition is leading to new joint ventures and changes in the contracting behaviours of companies such as JERA. Meanwhile, third-party access has been introduced but is still in its infancy. Gas demand is in long-term structural decline, mainly driven by a forecast decline in gas generation. Coal, nuclear and renewables are putting pressure on the share of gas generation in an electricity market that's expected to shrink overall. While we expect non-power demand to hold steady, overall LNG imports are expected to fall 20% by 2035 from current levels.