Japan imports first LNG cargo from China since 1988

Image courtesy of Tepco

Japan has reportedly imported its first cargo of LNG from China in July as utilities from the world’s biggest buyer of the chilled fuel look for new suppliers.

According to Reuters, China has become the world’s second-largest LNG buyer amid a surge in domestic gas usage.

However, the country began to re-export shipments due to a lull in summer gas consumption and Japanese buyers are buying cargoes to reduce their fuel expenses.

Citing industry sources close to the matter, the cargo of 70,560 tonnes of LNG was shipped from the CNOOC-operated Hainan LNG Terminal to Chita near Nagoya where Toho Gas jointly operates an LNG terminal with JERA.

Japanese official trade statistics show that this is the first LNG cargo from China since 1988 when the Japanese government started publishing import and export figures.

It is worth noting that prices for spot LNG in Asia LNG-AS sank to near record lows in recent weeks as a wave of new supply from the United States and Australia comes onto the market.

The decline in spot market prices for liquefied natural gas (LNG) is pushing Japanese utilities in Japan to be more aggressive in price reviews built into traditional long-term contracts linked to oil prices.

To remind, Hokuriku Electric also bought a spot LNG cargo for delivery in November, while Hokkaido Electric is seeking a cargo for delivery the same month.

Share this article

Follow LNG World News

Posted on August 30, 2019 with tags , .


<< Sep 2019 >>
26 27 28 29 30 31 1
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 1 2 3 4 5 6

6th Mozambique Gas Summit & Exhibit

This year’s edition will have a revamped programme for attendees.

read more >

Offshore Energy Exhibition and Conference 2019

The three-day event includes an exhibition where an expected 600+ supply chain companies will showcase their products and services.

read more >

LNGgc London

LNGgc is a fantastic way of raising attendees’ company profile within this market and creating greater awareness of their brand…

read more >

5th CWC China LNG & Gas International Summit & Exhibition

5th CWC China LNG & Gas International Summit & Exhibition will return 16 – 17 October 2019, bringing together the key players…

read more >