Two recent developments have led Japan to realize that US supplies of LPG may not always be cheaper than supplies from the Persian Gulf, or as available, throwing into some question a strategy to access more US-produced LPG in the future.
Posts Tagged ‘Japan’
By Takeo Kumagai | March 4, 2014 04:58 PM Comments (1)
By Ross McCracken | January 24, 2014 12:01 AM Comments (1)
Energy costs in Japan are reaching a critical point. The economy is growing too slowly to offset the burden of increased commodity energy imports. Renewables will add further costs. Bringing the country’s nuclear capacity back on-line appears to be the only option, but the process is proving slow. As it progresses, Japanese oil imports will fall, but LNG and coal usage in fiscal 2014 are still expected to reach historic highs. Ross McCracken looks at the issue in this month’s entry to The Barrel from Platts Energy Economist.
By Takeo Kumagai | November 28, 2013 12:01 AM Comments (0)
Japan has opened a public debate for the first time in more than a decade about whether to have clearer rules about third -party access to LNG terminals.
But it remains unclear whether the world’s largest LNG importer expects there will even be such demand for the third-party access at the country’s 31 import terminals.
By Takeo Kumagai | August 27, 2013 11:44 AM Comments (0)
After showing larger-than-usual fluctuations in monthly volumes during the second quarter of 2013, Japan’s crude imports from Iran look likely to stabilize for the next few months at least, as Tokyo seeks a further exemption from US sanctions in September.
So far Japanese buyers have been able to maintain their imports of Iranian crude, albeit at a significantly reduced rate, with ample supplies of alternative crudes, notably from Saudi Arabia and Kuwait.
But recent import data show unusually big swings in the amount of Iranian crude being imported into Japan, with volumes plummeting to just 7,549 b/d in April and then seeing a 32-fold rise the following month.
By Takeo Kumagai | May 28, 2013 08:09 AM Comments (0)
The US Department of Energy approval on May 17 for the shipment of liquefied natural gas from the Freeport LNG project in Texas to countries that do not have free-trade agreements with the US will be recorded as a milestone in Japan.
While the project still needs separate approval from the Federal Energy Regulatory Commission, Japan’s Chubu Electric and Osaka Gas could each get 2.2 million mt/year of US-sourced LNG under their natural gas liquefaction tolling agreement once Freeport gets the green light.
By Takeo Kumagai | February 26, 2013 12:01 AM Comments (1)
A research note published last week by the Development Bank of Japan on the impact and implications for Japanese industries as a result of the US shale gas revolution was food for thought.
Particularly, the bank’s analysis on the impact on Japanese LNG procurement coming from possible LNG imports from the US was notable.
In the report, the DBJ said that Japan might be able to cut its LNG import costs by 7-15% of by 2020 if Japanese companies were able to take a large amount of LNG from planned US export projects, with the price tied to Henry Hub gas prices.
By Takeo Kumagai | December 4, 2012 02:52 PM Comments (5)
While it has yet to be seen whether Japan’s increased efforts to pursue shifting its pricing basis for its LNG imports to other benchmarks will actually reduce its import costs, it is still certain that 2012 will be recorded as a landmark year for the country began to publicly pursue an alternative to the long-held oil index basis for LNG purchases.
After decades of maintaining the oil price indexation for almost all of its long-term LNG imports, going back all the way to its initial LNG imports in 1969, Japanese power and gas utilities have been able to make a switch in some contracts to a natural gas benchmark.
By Takeo Kumagai | August 31, 2012 10:37 AM Comments (0)
“Use air conditioning more at home!” I heard that joke — if it is a joke — from several oil industry sources from different companies in Japan at the start of the country’s three-month summer power demand season.
The phrase symbolized how Japan’s crude and fuel oil demand for power generation in July was a disappointment for the suppliers of those fuels, as demand for oil-fired power generation was not as strong as expected.
By News Desk | July 20, 2012 03:58 AM Comments (0)
The Asian paraxylene contract price for July was left in limbo as PX producers and downstream purified terephthalic acid makers failed to reach an agreement. The ACP monthly negotiation is led by four PX producers — ExxonMobil, JX Nippon Oil and Energy, Idemitsu Kosan and S-Oil — and six PTA makers — BP, Capco, Mitsui Chemicals Corp., Mitsubishi Chemical Corp., Oriental Petrochemical (Taiwan) Corp. and Yisheng Petrochemicals.
By Takeo Kumagai | June 5, 2012 07:33 AM Comments (0)
Come July 1, Japan will have to navigate through a maze of European Union sanctions against Iran and may have to make deeper cuts in its Iranian crude oil imports once the measures come into effect.
The biggest obstacle for Japan this year that may prevent it from maintaining already lower imports from Iran is if local buyers of Iranian crude oil lose the majority of their shipping insurance cover as a result of the EU sanctions and cannot secure alternative cover.