Japan 's Ministry of Economy, Trade and Industry plans to add coal to the energy projects that it provides with financial support in order to enhance the country's energy security, a METI official said Wednesday.

The move is in response to intensified competition for the fossil fuel with China and India , said the official, who asked not to be named.

METI late last month placed a request to the Ministry of Finance to allocate Y6.7 billion for investment in coal exploration and underwriting loans for coal developments that involve Japanese companies in the fiscal year that starts next April.

Next financial year's budget will be announced by the end of December.

METI currently provides financial support to oil and natural gas exploration and development through Japan Oil, Gas and Metals National Corp., or Jogmec.

METI already conducts basic coal exploration work like collecting geographical data through the New Energy and Industrial Technology Development Organization.

Jogmec will take over this basic research responsibility for coal from NEDO, the official said.

Japan has been the world's largest coal importer by volume for years, but its strong standing as a big buyer is being threatened as China and India rapidly catch up.

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