LNG

Japanese liquefied natural gas imports increased marginally in June even at higher prices, though the half-year figures showed a downward trend for 2024.

JERA Co. Inc., Japan’s biggest liquefied natural gas importer and utility company, reported an increase in fiscal full-year profits while revenues plunged nearly 22 percent because of a decrease in electric power sales.

March 28 (LNGJ) - Japan’s future LNG needs may be further affected by moves to bring the Kashiwazaki-Kariwa nuclear facility in central Japan, one of the largest in the world by output, back on line. Tokyo Electric Power Company (TEPCO) Holdings, the publicly listed company and plant operator majority-owned by the Government of Japan, said it had submitted a proposal to deliver nuclear fuel to the No. 7 reactor at its idled Kashiwazaki-Kariwa nuclear plant as early as April 15.

   JERA Co. Inc., Japan’s largest LNG importer, is 50-percent owned by TEPCO and another 50 percent stake in JERA is held by Chubu Electric Power. TEPCO said it was seeking approval for the fuel plan from the Nuclear Regulation Authority. However, it was still uncertain whether the 1.35-million-kilowatt reactor located in the coastal area of Niigata Prefecture can actually be restarted soon because such a move still requires the consent of all local governments in the service area.

Inpex Corp., the Japanese operator of the Ichthys LNG plant in Australia and developer of the Abadi LNG project in Indonesia, has signed a natural gas and decarbonisation deal with Ashikaga City north of Tokyo known for its historic trees, flower beds and pristine water to supply gas from the next phase of cleaner LNG projects.

Japanese liquefied natural gas imports dropped by 10.5 percent amid milder winter weather and prices at almost 30 percent lower levels while thermal coal imports were steady and plans were revealed for another nuclear restart.

Dec 20 (LNGJ) - Japan’s November LNG imports declined almost 4 percent to 5.33 million tonnes, or 79 cargoes, compared with 5.55MT, or 82 cargoes, in November 2022, the Finance Ministry said in its provisional trade statistic. Most of the deliveries came from Australia or the spot market and these amounted to 3.03 million tonnes.

   Imports from the US were down more than 50 percent year-on-year to 191,000 tonnes. Deliveries from the Middle East were also lower by more than half at 481,000 tonnes. LNG shipments from Asian export plants to Japanese terminals increased by 5 percent to 1.63MT while deliveries from Russia amounted to 446,000 tonnes, down by 14.4 percent from November 2022. Thermal coal imports fell 2.4 percent to 8.31MT.

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.

The Japan Organization for Metals and Energy Security (Jogmec), a Japanese government agency, has released the results of two annual surveys on the volumes of LNG handled by Japanese companies and the current status of the destination restrictions in LNG sales and purchase agreements.

Chiyoda Corp., the leading Japanese liquefied natural gas and energy engineering company, has been awarded a contract by Japan’s Mitsubishi Corp. to study the establishment of carbon-capture and storage (CCS) value chains in Japan and elsewhere using its expertise in LNG liquefaction.

Japanese liquefied natural gas imports increased last month as thermal coal imports dropped and energy players in Japan signed more LNG supply contracts amid stricter energy security polices to confront geopolitical uncertainties.