Nov 24 (LNGJ) - JERA Co. Inc., the largest Japanese LNG buyer and power assets holder, has issued its winter electricity supply outlook for December 2021 to February 2022 and said more spot LNG cargoes may have to be purchased. “Last winter, factors such as a sharp increase in electricity demand caused by intermittent cold weather and a decline in LNG inventories that curbed power generation led to a tightening of electricity supply-demand,” JERA recalled.
“JERA believes it is important that the global fuel supply-demand situation be clearly reflected in bid prices on the Japan Electric Power Exchange (JEPX) domestic electricity spot market and that appropriate price signals be sent to the market.,” it explained. “In addition, JERA will revise its approach to marginal cost as reflected in bidding prices on the JEPX spot market for the Tokyo area to incorporate the price of additional fuel such as LNG spot procurement,” stated the company.
