Japanese LNG imports edge lower after three successive rises as cargo costs surge by 124 percent in July
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.
