Japan’s electric power supplier Hokuriku Electric has reportedly bought a liquefied natural gas (LNG) cargo for delivery in November.
Citing industry sources, Reuters said that searing hot temperatures drew down inventory in the country and that lower spot prices lured buying of cargoes.
The Japanese utility likely bought the cargo for delivery in the second half of November from Malaysia’s energy major Petronas.
Unrelated to the this most recent buy, Petronas signed a deal with Hokuriku Electric Power in December 2016 to supply up to sixty cargoes of LNG to Hokuriku. The first cargo under the contract was delivered in early April 2018.
According to a presentation to investors in April, the company’s overall LNG consumption rose to 40,000 tonnes in 2018, compared with none in 2017, while its heavy oil consumption reduced by nearly one-third and its crude oil consumption halved from a year ago.
The sources also told Reuters that Hokuriku was also currently in talks to purchase LNG through term supply, but details were left undisclosed.
Higher-than-usual temperatures in the country had also prompted some buying interest from Japanese buyers such as Tohoku Electric Power and JERA, as well as a JV between Tokyo Electric and Chubu Electric Power.