Japan Approves JERA Plan to Keep Surplus LNG in Winter
11.24.2023 By Tank Terminals - NEWS

November 24, 2023 [Market Screener]- Japan’s industry ministry has approved a plan by the country’s top power generator JERA to hold a surplus of liquefied natural gas (LNG) in the winter as a strategic reserve in case of supply disruptions, its minister said on Friday.

 

Japan, the world’s biggest LNG importer in 2022, has decided to build a so-called “strategic buffer LNG (SBL)” during the peak winter demand season to ensure stable supply of the super-chilled fuel after last year’s energy crunch.

“LNG plays an important role in the supply of electricity and gas in Japan, and with the tightening global gas supply, we are strategically securing surplus LNG in case of temporary supply disruptions,” Industry Minister Yasutoshi Nishimura told a news conference.

Japan has strategic oil reserves but not LNG.

Under the new plan, JERA — which is already Japan’s biggest LNG buyer — will buy and store the equivalent of at least one additional tanker a month from December to February, when heating demand typically increases. The company will provide the emergency supply to domestic companies if and when requested by the ministry.

A specialized tanker can carry about 70,000 metric tons of LNG.

LNG inventories held by major Japanese power companies, a key indicator of national stock levels, were at 2.49 million metric tons as of Nov. 19, above a five-year average of 2.12 million tons for end-November, METI data shows.

“As an authorized SBL supplier, we aim to make utmost efforts to secure stable fuel supply and contribute to Japan’s energy security,” said a JERA spokesperson.

JERA, a joint venture between Tokyo Electric Power and Chubu Electric Power, is Japan’s biggest buyer of LNG.

Many governments worldwide are formulating strategic natural gas reserve policies, building new terminals and storage tanks as buffers against supply disruptions following last year’s energy crunch that sent global prices soaring to record highs.

 

Pro Trial: Access 12,600 Tank Terminal and Production Facilities

12,600 tank storage and production facilities as per the date of this article. Click on the button and register to get instant access to actionable tank storage industry data

Hiap Huat JV Co to Build RM100m Liquid Bulk Storage Terminal in West Port Over Five Year Period
06.21.2024 - NEWS
June 21, 2024 [New Straits Times]- Hiap Huat Holdings Bhd’s joint venture company with KL P... Read More
Madrid-Based Company FRV Announces Plans to Develop Green Hydrogen Project in Brazil
06.21.2024 - NEWS
June 21, 2024 [Bioenergy Times]- FRV, a renewable energy development company based in Madrid and ... Read More
China's Wison New Energies to Quit Russian Projects in Blow to Arctic LNG 2
06.21.2024 - NEWS
June 21, 2024 [Reuters]- Chinese engineering firm Wison New Energies has decided to discontinue a... Read More
TotalEnergies, NNPC Take FID on New Gas Project to Supply Nigeria LNG Plant
06.21.2024 - NEWS
June 21, 2024 [LNG Prime]- France’s TotalEnergies and Nigeria’s NNPC have taken the final inv... Read More