LNG

May 12 (LNGJ) - Kyushu Electric Power, a long-term LNG buyer with current long-term contracts with the Australian Gorgon LNG and Wheatstone LNG plants, has launched a new subsidiary for LNG trading. “Kyushu has launched a new subsidiary dedicated to supply to meet emerging demand,” said the company.

   Kyushu Electric said that the function of the optimization of fuel procurement would be transferred to the new subsidiary to integrate delivery scheduling and balancing in incremental demand and existing demand. The new LNG trading company, based in Fukuoka in Japan, will be called Q United Energy Supply and Trading Co. (Quest).

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.

Japanese liquefied natural gas imports dropped last month and cost around 18 percent less than a year ago as the nation continued to reduce its annual cargo requirements, though Australian shipments remained substantial.

Spot liquefied natural gas cargoes delivered to Japan last month cost $2.20 per million British thermal units more than in the previous month even as market prices were much lower and available volumes were high.