LNG

Qatar expects to restore normal liquefied natural gas production “within a few weeks,” Prime Minister Sheikh Mohammed bin Abdulrahman al-Thani told the Financial Times, provided the US and Iran establish a “hotline” to ensure safe passage through the Strait of Hormuz.

No LNG carriers are at the Ras Laffan berths and no loadings under way, our vessel tracking data shows, and Sunday night's explosion and fire at the Barzan plant points to a slower return to market for the complex than its recent restart signals had implied.

QatarEnergies is working towards restarting some LNG trains at Ras Laffan, as shipping disruptions are anticipated to ease by the end of April. If the Strait of Hormuz remains closed until July or beyond, however, analysts reckon prices at the Dutch TTF gas trading hub would need to rise to well above 2022-levels for Europe be able to refill storages.

TEPCO is rushing to restart of Unit 6 Japan’s largest nuclear power station to displace LNG-fuelled power at a time of escalating gas prices. With 1,356 MW installed capacity, Kashiwazaki-Kariwa Unit 6, is could help avoid combustion of 1.3 million tons of imported LNG, based on Japanese government estimates of fuel substitution.

Japan’s Saibu Gas has called off plans to start construction of an LNG-fired power plant, saying the 1,600 MW project was “postponed” – some observers say indefinitely. The decision was made after Kyushu Electric hesitated to sign a power purchase agreement.

Regulatory findings that Kysuhu Electric Power could safely restart two Japanese nuclear reactors are expected to have merely a marginal effect on the price paid for LNG imports, analysts said. For prices to fall significantly, more of the country's 46 reactors would have to resume operations.