Japanese LNG imports fall for second month as milder weather and high storage also reduce spot cargo needs
Japanese liquefied natural gas imports decreased for a second month in 2024 by almost 6 percent as milder winter weather and higher storage levels reduced cargo needs especially of more expensive spot shipments even at much lower prices.
Japanese energy and LNG engineering company Chiyoda merges three companies in group overhaul
Chiyoda Corp, the leading Japanese energy and LNG engineering company involved in projects worldwide, has announced that it will merge three group companies as part of a corporate overhaul and a re-organization of executives.
The company will merge Chiyoda Kosho Co., Chiyoda System Technologies and Chiyoda TechnoAce Co., to establish a company called Chiyoda X-ONE Engineering Corp.
Chiyoda is currently working on LNG engineering, procurement and construction projects in Qatar, the US and Nigeria.
The company is also executing the EPC phase of the North Field East LNG project, which is the expansion of four LNG Trains with capacity of 8 million metric tonnes per annum.
In the US, the main EPC focus of the company is the Golden Pass LNG project being developed by QatarEnergy and ExxonMobil.
Core business
The new “Chiyoda X-ONE Engineering Corp.” will be based at its Koyasu Office and Research Park in Yokohama as of 1 April 2023.
Chiyoda said that the name of the new company includes “Engineering” as its core business and “X-ONE” in reference to the combination of Transformation (X) by “One Team” .
Following the merger, Chiyoda Kosho Co. will operate as the company's “Energy, Environment & Maintenance Business Division”, Chiyoda System Technologies Corp. will function as its “Instrumentation & Electrical Solutions Business Division” and Chiyoda TechnoAce Co. Ltd will operate as its “Life Science Business Division”.
“The company is committed to optimizing the technological capabilities, experience and track record accumulated by the three organizations to progress as a sustainable leading integrated engineering contractor,’ said Chiyoda.
Chiyoda X-ONE Engineering Corp. will be under President Taku Ito, while a Chief Executive will be appointed to the new entity.
“Prior to the merger, Chiyoda will reorganize its plant operation and maintenance solution and digital transformation business organizational functions to launch a new ‘O&M Transformation Solution Business Department’ as of 1 January 2023,’ explained Chiyoda.
“Chiyoda will collaborate with the company, other Group companies and business partners in implementing its growth strategy in the new business portfolio innovations of life science, next-generation power systems, carbon neutrality and plant operation and maintenance solutions, as well as traditional energy sectors,” stated Chiyoda.
“While continuing to contribute to resolving society’s challenges, Chiyoda is proactively responding to changes in the business environment and aiming to strengthen as a consolidated group,” it added.
Japan's LNG imports jump for second month amid surge in costs with more Russian deliveries than from US
Japanese liquefied natural gas imports increased for a second successive month in May as they rose by 16.3 percent and Russian deliveries were twice as much as those from the US.
Shipments of LNG to Japan amounted to 5.76 million tonnes last month, or 85 cargoes, compared with 4.95MT, or 73 cargoes, in May 2021, according to the preliminary trade figures from the Japanese Ministry of Finance.
Japanese LNG deliveries to the network of 37 terminals around the main islands had been 5.57MT in April, or 82 cargoes, compared with 4.97MT, or 73 cargoes, in April 2021.
LNG costs for the nation last month surged year-on-year by 155 percent to 601.40Bln yen ($4.47Bln) compared with 236.15 Bln yen ($1.76Bln) in May 2021.
Yen plunge
The effect on the balance of payments was even more severe as the Japanese yen has dropped to a 24-year low against the dollar, meaning dollar-based commodities like energy are more expensive when converted back into yen.
The country lost the No. 1 LNG import position in 2021 to China, though in certain weeks in May and June Japan has been the biggest North Asia importer as China reduced shipments amid Covid-19 lockdowns.
Shipments to Chinese terminals in 2021 had amounted to 78.93MT which was 18.3 percent more than in 2020.
Japan’s 2021 cargo deliveries were 74.31MT, down 0.2 percent on 2020 and 4.62MT less that the Chinese total for 2021.
Thermal coal shipments also increased in May to 8.54MT at the nation’s coal terminals, a rise of 7.1 percent year-on-year.
On a fiscal year basis, Japanese LNG imports had dropped in the April 2021 to March 2022 period by 6.4 percent to 71.46MT versus 76.35Mt in the previous fiscal year, according to Ministry statistics.
Russian deliveries
During May 2022 shipments of LNG from Russia declined by 5.4 percent to 559,000 tonnes, though were higher than April’s 396,000 tonnes of deliveries. The shipments come frm the Gazprom-run Sakhalin plant in the Russian Far East.
They were also more than double the amount of shipments imported from the US, which dropped by more than 51 percent to 267,000 tonnes.
Imports from the US had dropped in April by 12 percent to 344,000 tonnes as the Russian invasion caused Asia-bound shipments to be re-directed to Europe.
Middle East cargo deliveries from nations like Qatar were down by 16 percent last month to 545,000 tonnes.
Shipments of LNG to Japan in May from Asian countries surged by 56.7 percent to 1.36MT, though were down on the 1.49MT received in April 2022.
The balance of imports in May 2022 came from Australia, African nations and the spot market.
That segment of the imports was higher at 3.03MT versus the 2.30MT received in May 2021 and up on the 2.95MT delivered in April.
Thermal coal shipments to Japanese ports in the fiscal year to the end of March 2022 had increased by 8.8 percent to 114.46MT, outpacing the LNG volumes of 71.46MT during the same period.
The almost parity levels between thermal coal imports and LNG shipments disappeared in 2021 with thermal coal deliveries moving well ahead.
Nuclear power generation in Japan is still well down. Nine reactors from a total of 16 plants with 50-plus reactors are operating from those that have gained the regulatory safety agreements.
Japanese LNG imports restructure as deliveries fall while costs are up 50 percent and Russian deliveries rise
Japanese liquefied natural gas imports tumbled 15.8 percent last month and cargoes from Russia surpassed those from the Middle East while shipments from US export plants dropped.
Japanese LNG imports in January 2022 amounted to 6.78 million tonnes, just under 100 cargoes, compared with 8.06MT, or 118 shipments, in January 2021, according to the preliminary trade figures from Japan's Ministry of Finance.
Imports of LNG to Japan in December had declined by 9 percent to 7.03MT compared with 7.72MT in December 2020.
The cargoes received in January cost 556.63 billion yen ($4.81Bln), which was over 50 percent more than in January 2021 when the costs were 365.84Bln ($3.16Bln).
The restructuring of Japan’s LNG deliveries came after the nation formally ceded the No. 1 LNG import spot to China.
Shipments to Chinese terminals in 2021 had amounted to 78.93MT which was 18.3 percent more than in 2020.
Japan’s Finance Ministry confirmed annual cargo deliveries to Japan as 74.31MT, down 0.2 percent on 2020 and 4.62MT less that the Chinese total for 2021.
Shipments of LNG to Japan in January 2022 from Asian countries dropped by 6.9 percent year-on-year to 1.59MT.
Mideast supply down
Middle East cargo deliveries from nations like Qatar crashed by 55.6 percent versus January 2021 to 634,000 tonnes. That's as contracts ended or were re-arranged.
LNG imports from the US dropped by 31.7 percent in January to 651,000 tonnes while deliveries from Russia during the month climbed by over 41 percent to 780,000 tonnes.
The balance of imports in January 2022 came from Australia, African nations and the spot market.
That segment of the imports came mainly from Australia and amounted to 3.12MT, which was lower than the January 2021 total of 3.96MT.
The December data showed that the Japanese imports of thermal coal fell by less than LNG shipments.
Thermal coal imports in January dropped 1.3 percent year-on-year to 10.54 million tonnes.
The almost parity levels between thermal coal imports and LNG shipments disappeared in 2021 with thermal coal deliveries jumping to 112.92MT, an increase of 7.7 percent.
Nuclear power generation in Japan is still much reduced with only five plants with nine reactors from a total of 16 plants with 50-plus reactors having gained the agreement of local authorities to resume operations.
Tohoku Electric Power secures six LNG cargoes as Japanese utilities avoid last year’s shortages
Japanese utility Tohoku Electric Power has signed a contract with BP of the UK for six cargoes of liquefied natural gas for early 2022 to avoid paying too high a price on the spot market and to help keep inventories at a high level this coming winter.
Japan’s leading LNG engineers JGC Corp. name ex-KBR man Farhan Mujib as first non-Japanese President
JGC Holdings Corp., the leading Japanese LNG and energy engineering firm, has appointed the former executive at KBR of the US, Farhan Mujib, as President of JGC Corp, the overseas engineering, procurement and construction business.
LNG plant builder JGC to expand safety monitoring used on Eiffel Tower to Japanese infrastructure
JGC Holdings Corp. of Japan, the leading global builder of liquefied natural gas liquefaction facilities and commissioned by the Japanese space agency to design a fuel plant for the moon, has started another joint venture to adapt the safety monitoring process for the Eiffel Tower to Japanese infrastructure.
Japanese monthly LNG imports decline on lower volumes from Middle East and the spot market
Japan’s liquefied natural gas imports declined last month for a second month with drops in volumes from the Middle East, Australia and the spot market being partly offset by deliveries from Asian neighbours, Russia and the US.
LNG importer Tokyo Gas completes gas pipeline to link up four import terminals amid storage expansion
Tokyo Gas, the second-largest Japanese liquefied natural gas importer, has completed construction of a high-pressure pipeline called the Ibaraki Line to complete the mutual back-up system between four LNG import terminals as the Hitachi facility has also expanded storage.
Toyo Engineering move
April 20 (LNGJ) - Toyo Engineering Corp., the Japanese energy engineering company specializing in LNG terminals and involved in India’s LNG network build-out, has acquired Japan Infra Waymark Co. (JIW), which provides Artificial Intelligent-based drone infrastructure inspections.
“Toyo will provide advanced inspection services using JIW technology,” said the company. It will initially work with Japanese energy suppliers on domestic inspections, including Osaka Gas, Saibu Gas Co, TEPCO Power Grid Inc., Hokuriku Electric Power Co. and NTT DATA Corp.
