Japanese LNG imports drop for a fifth straight month amid more nuclear and coal competition
Japanese liquefied natural gas imports have gone into reverse as shipments dropped for a fifth straight month amid competition from thermal coal and nuclear and with Australian and spot cargoes replacing deliveries from the Middle East and Asia.
Cargoes delivered to Japan in March 2019 amounted to 7.29 million tonnes compared with 7.93MT in February 2018, a fall of 8.1 percent versus March 2018.
Japan’s February deliveries had plunged by 11.4 percent and the last time Japanese imports rose was in October 2018 when 6.53MT was received, a 6.5 rise on the previous October. Even during the peak winter months from November 2018 through January 2019, imports dropped
Nine of Japan's nuclear power plants, which numbered 54 on line before the Fukushima disaster in 2011, have re-started to reduce LNG needs.
Thermal coal imports were preferred over LNG in March as 9.58MT was imported, an increase on February, though down 3 percent on March 2018.
The cost of the March 2019 cargoes came to 445.29 billion yen ($3.97Bln), a rise of 7.5 percent from the 414.35Bln yen ($3.70Bln) the cargoes cost in the same month a year ago.
For balance of payments purposes, Japan has been trying for a number of years to bring LNG import costs under control.
The Ministry of Finance data for March showed that Asian LNG shipments from nations such as Malaysia and Indonesia, Papua New Guinea and Brunei dropped 20.7 percent year-on-year to 1.73MT.
Imports from the Middle East region fell 26.7 percent versus 2018, with shipments from countries like Qatar, the United Arab Emirates and Oman totalling 1.32MT in March.
US shipments amounted to 198,000 tonnes, down on the 335,000 tonnes received in February.
Monthly Russian shipments from the Sakhalin Island plant in the Far East dropped 19.8 percent in March to 524,000 tonnes.
The balance of imports from Australia, African nations and the spot market amounted to 3.51MT, a jump of 24 percent compared with the 2.83MT received in February 2019. The volume of cargoes was also up 11.6 percent year-on-year versus the 3.14MT logged in March 2018.
Japanese LNG imports had declined by 0.9 percent in 2018. The 2018 imports amounted to 82.85MT versus 83.63MT received in 2017.
Japan’s 2018 import bill was 20.8 percent higher than in 2017 at 4,730Bln yen ($43.14Bln). The Japanese had paid 19.3 percent more in 2017 with an LNG bill of 3,915Bln yen ($35.58Bln).
