LNG

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.

Japanese liquefied natural gas imports dropped by 12 percent in March even as cargo numbers remained stable from Australia and Asian nations and with thermal coal shipments falling by more than delivered LNG volumes amid ample stocks and lower demand for power generation.

JERA Co. Inc., the largest Japanese importer of LNG, had to cope with an emergency on March 27 after sulfuric acid starting leaking from the pipes of a wastewater treatment facility at the Hirono Thermal Power Station in Fukushima Prefecture in the region where the nuclear disaster and tsunami occurred 12 years ago.

Japanese liquefied natural gas imports declined last month by 0.4 percent after three successive increases and year-on-year costs more than doubled as volumes increased from Asia and Australia.

Shipments of LNG to Japan’s network of 37 terminals amounted to 6.16 million tonnes in July 2022, or 92 cargoes, compared with 6.19MT, or 91 cargoes, in July 2021, according to the preliminary trade figures from the Japanese Ministry of Finance.

Japan had imported 5.80MT in June 2022 compared with 5.70MT in the same month of 2021.

The nation’s LNG costs in July 2022 amounted to 773.1 billion yen ($5.65Bln), a more that 124 percent increase compared with the 344.99 Bln yen ($2.52Bln) paid in June 2021.

Weaker yen

The effect on Japan’s balance of payments was severe in June as the Japanese yen dropped to a 24-year low against the dollar, though it recovered in late July and August, though dollar-based commodities like energy are still more expensive when converted back into yen.

Japan’s 2021 LNG cargo deliveries had been less than those of China for the first time and came to 74.31MT, down 0.2 percent on 2020 and 4.62MT less that the Chinese total for 2021.

Japanese thermal coal shipments also fell in July to 9.36MT, down by 4.1 percent from July 2021.

The price of thermal coal deliveries jumped higher to 408.46Bln yen ($2.98Bln), up 262.4 percent from July 2021.

During July the volumes of delivered LNG increased from Asia and Australia compared with last year.

Shipments of LNG to Japan in July increased by 19.6 percent to 1.73MT from Asian countries like Malaysia and Indonesia.

Middle East cargo deliveries from nations like Qatar were down by 54.7 percent last month to 401,000 tonnes.

Deliveries from the US increased by 8.9 percent from July 2021 to 665,000 tonnes.

This was higher than the 562,000 imported in July from the Russian LNG plant on Sakhalin Island, which were down 26.1 percent from July 2021.

The balance of LNG imports in July 2022 came from Australia, African nations and the spot market.

That segment of the imports was higher at 2.80MT compared with the 2.48MT logged in July 2021.

Nuclear

As of the start of July 2022, 10 nuclear reactors at six power stations have been given the go-ahead to restart in Japan but only four reactors were in operation.

Several Japanese Prefectures have agreed to restart the reactors, though were awaiting the implementation of safety measures and the completion of other construction work.

Before the Fukushima disaster in 2011, 54 nuclear reactors were in operation in Japan, supplying about 30 percent of the country’s electric power.

The 10 reactors with start-up approvals are at the following six power stations: Ōi, Takahama, and Mihama (Kansai Electric), Genkai and Sendai (Kyushu Electric) and Ikata (Shikoku Electric).

These plants based in western Japan all use pressurized water reactors, which are different from the boiling water reactors at the Fukushima plant than exploded after an earthquake and tsunami.

Japanese liquefied natural gas imports dropped almost 9 percent in March as cargoes increased from Russia and the US while shipments from the Middle East and Asia declined at the same time as Japan’s thermal coal deliveries skyrocketed by over 25 percent.

Japanese liquefied natural gas imports fell 2.6 percent last month and thermal coal shipments jumped by over 27 percent as the International Energy Agency issued a timely report saying global coal-power’s sharp rebound is taking it to a new record in 2021, threatening net-zero carbon-dioxide reduction goals.

Japanese liquefied natural gas imports plunged almost 17 percent as the nation directly replaced gas-fired power with cheaper thermal coal as LNG prices surged worldwide.

Japan’s liquefied natural gas imports declined last month after near record shipments in the previous month and with a fall in spot and Asian cargo numbers being offset by rises in Middle East, US and Russian shipments.

Japan’s liquefied natural gas imports soared by more than 21 percent last month, backed by a doubling of US supplies and more cargoes from Asia and Russia as stocks were rebuilt after the high winter season usage.

Japan’s liquefied natural gas imports jumped by 7.3 percent last month, backed by a more than doubling of US supplies, underpinned by cargoes from Australia and the spot market, while thermal coal shipments surge by almost 11 percent.