Japan's INPEX, Kyushu Electric and Thailand's PTT International Trading have reportedly agreed to co-operate to optimise their LNG cargoes, fleet and tank operations.
According to newswires, this move has been made to help ensure the companies LNG supplies during times of emergency.
Under a Memorandum of Understanding (MoU), said to have been signed on 19th October, the three parties have agreed to jointly plan LNG spot cargo procurements and swap cargoes, as well as using LNG reload and storage facilities in Japan and Thailand to optimise their LNG stocks during emergencies.
They will also negotiate to receive each others LNG cargoes at their import terminals for swaps and reloads, as well as jointly operating their fleets.
This move was made in response to last winter’s problems, when Japanese power utilities and energy companies faced a shortage of LNG during extreme cold spells, which prompted Japanese companies to better prepare for contingencies ahead of this year’s winter demand season.
For Kyushu Electric, which imports a large amount of LNG from Australia, an emergency framework could work as a triangular supply network between Japan, Thailand and Australia, a source told newswires.
Meanwhile, Thailand's PTT has been working to develop its regional LNG hub services to compete with regional rivals, such as Malaysia, Indonesia and Singapore.
Southeast Asia's LNG importers and exporters are gradually building LNG redistribution capabilities to allow full shipments to be split into smaller parcels to supply downstream buyers in the region.
Australia is by far Japan's largest LNG supplier exporting 17.96 mill tonnes of LNG between January and August, accounting for 35% of the country's total LNG imports, according to Ministry of Finance data.
Currently, INPEX’s Ichthys LNG facility sells about 300,000 tonnes per year of LNG to Kyushu Electric.
All three utilities have LNG storage facilities available.
