Japanese utilities scour the world for urgent LNG cargoes

Japanese utilities are scrambling for emergency extra LNG cargoes to fill the void left in the wake of the earthquake that has shuttered many of the nation’s nuclear facilities.


Qatargas is reported to have committed at least eight additional cargoes for delivery to Japan while Korea’s KOGAS, the world’s largest single largest LNG importer, has agreed to shift seven cargoes to its neighbour. Taiwan’s CPC has sold one cargo to Mitsui for delivery to Tokyo Bay.


Elsewhere Japanese firms including Mitsubishi and TEPCO are in negotiations with Oman and Indonesia for swift delivery of extra LNG as power shortages ravage the stricken nation. Tokyo Gas meanwhile has bought back a number of cargoes initially won by BP in Japan from Australia’s Northwest Shelf.


Around 11 gigawatts (GW) of nuclear generating capacity was removed from the Japanese grid following the huge quake and tsunami. As a result, the country is expected to import around an extra 10m tonnes of LNG this year as gas-fired power stations ramp-up supply to make up the shortfall.
(Source:http://www.seatrade-asia.com)