Japanese liquefied natural gas imports increased for a second month with more shipments being supplied by Asian nations and the US at much lower prices while deliveries declined of thermal coal for power generation.
Deliveries of LNG to the nation’s regasification terminal network rose by 6.4 percent in October 2023 to 5.42 million tonnes, or 80 cargoes, from the 5.08MT, or 75 shipments, received in October 2022, according to preliminary trade data from the Japanese Finance Ministry.
Imports in the previous month of September had risen by 3.8 percent to 5.52MT from the 5.32MT received in September 2022.
The Ministry figures also showed that LNG cargoes cost 37.6 percent less in October2023 at 495.56 billion yen ($3.31Bln) compared with 794.76Bln yen ($5.30Bln) in October 2022.
Deliveries of thermal coal to Japanese ports dropped by 5.1 percent year-over-year to 8.61MT.
Asia steady
The Ministry data showed the imports of LNG last month from Asian nations like Malaysia, Indonesia and Brunei increased by 26.6 percent from October 2022 to 1.19MT.
Middle East shipments from countries such as Qatar increased by 12.2 percent year-over-year to 421,000 tonnes.
Deliveries from US liquefaction and export plant increased by 175 percent to 568,000 tonnes, though the total was less than the previousmonth’s 707,000 tonnes.
Russian LNG deliveries to Japan fell by 4.6 percent to 506,000 tonnes.
The balance of deliveries to Japan from Australia and the spot market in October 2023 amounted to 2.73MT, which was less than the previous month’s 2.89MT and the 2.92MT logged for this segment in October 2022.
Japan had regained the global No. 1 spot as an LNG importer from China in 2022 with its 72MT of volumes, though the pace of Chinese deliveries has increased in 2023.
Nuclear competition
Japan is also using more nuclear power and intends to bring other reactors on line over the next year or so as public opposition lessens with energy security taking priority.
Almost a dozen reactors are now back in operation compared with the 54 that were online in 2011 before the Fukushima disaster and which had supplied around 30 percent of Japan’s energy needs.
The latest nuclear restart was the Takahama-1 plant owned by LNG importing utility Kansai Electric Power Company and brings to 11 the number of plants in operation from the 33 that are capable of re-starting.
Japan’s Nuclear Regulation Authority is examining the re-start proposals for 10 more N-plants.
Among them is Chugoku Electric Power’s plans to restart the No. 2 reactor at its Shimane nuclear power station in August 2024.
The 11 restarted reactors so far are: Genkai-3 and Genkai-4, Ikata-3, Mihama-3, Ohi-3 and Ohi-4, Sendai-1 and Sendai-2 and Takahama-1, Takahama-3 and Takahama-4.
