Massive LNG restrictions in Japan

Faced with delays in the arrival of LNG tankers, JERA imposed fuel restrictions, heightening fears of an energy shortage in Japan.
Restrictions LNG Japon

Partagez:

From March 27 to 29, JERA had to impose fuel restrictions, increasing the capacity outage to 6.72 GW due to unfavorable ocean conditions that delayed LNG deliveries. These measures were taken in response to delays caused by high waves in mid-March, which prevented LNG vessels from docking and exacerbated a drop in LNG stocks due to increased demand.

Impact and management of restrictions

Despite the restrictions, the Tokyo area maintained a reserve capacity of over 10%, deemed sufficient to cover demand during this period. Tokyo Gas officials confirmed that LNG deliveries to their Negishi, Ohgishima and Sodegaura terminals, operated jointly with JERA, had gone according to plan.

Impact on LNG stocks and market responses

JERA’s LNG stocks fell to 1.52 million tonnes on March 24, the lowest level since the end of January 2021, when stocks stood at 1.49 million tonnes. This situation highlights Japan’s sensitivity to fluctuations in the LNG market, exacerbated by increased demand following colder-than-usual temperatures.

Policy response and preventive measures

Faced with these challenges, the Ministry of Economy, Trade and Industry (METI) has drawn up guidelines to ensure adequate LNG stocks, particularly during peak demand seasons. A METI official expressed his intention to investigate the causes of the fuel restrictions and stressed the importance of maintaining adequate capacity to avoid significant impacts on gas-oil generation capacity.

Takayuki Nogami from JOGMEC highlighted the risks of power supply disruptions in the event of rapidly declining LNG stocks, exacerbated by delays in ship arrivals and increased demand due to falling temperatures.

  • Populaires ​
Egypt launches $200mn industrial solar complex at Ain Sokhna
Mexco Energy reports 27% increase in annual profit
Argentina and Peru strengthen cooperation in civil nuclear sector
Algeria and Angola strengthen energy cooperation at US–Africa summit
Plenitude and Modine launch 1.585 MWp solar power plant in Italy
Golar LNG raises $575mn through bond issuance and repurchases shares
Golar LNG Limited has completed a private placement of $575mn in convertible bonds due in 2030, using part of the proceeds to repurchase and cancel 2.5 million of its own common shares, thus reducing its share capital.
Shell ships first LNG cargo from its LNG Canada facility
Shell Canada Energy announces shipment of the first liquefied natural gas cargo from its LNG Canada complex, located in Kitimat, British Columbia, primarily targeting fast-growing Asian economic and energy markets.
Australia considers east coast gas reservation as market pressures intensify
The Australian government is considering the establishment of an east coast gas reservation as part of a sweeping review of market rules to ensure supply, with risks of shortages signalled by 2028.
The drilling fluids industry will reach $10.7bn by 2032 driven by oil expansion and chemical innovations
The increase in oil drilling, deepwater exploration, and chemical advances are expected to raise the global drilling fluids market to $10.7bn by 2032, according to Meticulous Research.
Enbridge Gas Ohio challenges tariff ruling cutting its revenues by $30mn
Enbridge Gas Ohio is assessing its legal options following the Ohio regulator's decision to cut its revenues, citing potential threats to investment and future customer costs.
Global small-scale LNG market to reach $31.78bn by 2030
The small-scale liquefied natural gas market is forecast to grow at an annual rate of 7.5%, reaching an estimated total value of $31.78bn by 2030, driven particularly by maritime and heavy-duty road transport sectors.
Europe extends gas storage obligations until 2027
The European Union extends gas storage regulations by two years, requiring member states to maintain a minimum fill rate of 90% to ensure energy security and economic stability amid market uncertainties.
Chevron and Energy Transfer Expand Their LNG Agreement at Lake Charles
Energy Transfer strengthens its partnership with Chevron by increasing their liquefied natural gas supply agreement by 50% from the upcoming Lake Charles LNG export terminal, strategically aiming for long-term supply security.
Woodside completes sale of 40% stake in Louisiana LNG project to Stonepeak
Woodside finalises the divestment of a 40% stake in the Louisiana LNG project to Stonepeak, injecting $5.7 billion to accelerate developments and optimise financial returns ahead of first gas delivery scheduled in 2026.
Keranic takes over Royal Helium and fast-tracks Steveville plant restart
Keranic Industrial Gas seals a sixty-day exclusivity deal to buy Royal Helium’s key assets, raise CAD9.5mn ($7.0mn) and bring Alberta’s Steveville plant back online in under fifteen weeks.
Fusion Fuel: Al Shola Gas secures AED4.4 mn ($1.2 mn) in contracts
The Irish-Portuguese company Fusion Fuel strengthens its footprint in the United Arab Emirates as subsidiary Al Shola Gas adds AED4.4 mn ($1.2 mn) in new engineering contracts, consolidating an already robust 2025 order book.
Cheniere Energy Approves Expansion of Corpus Christi LNG Terminal for 2029
Cheniere Energy validates major investment to expand Corpus Christi terminal, adding two liquefaction units to increase its liquefied natural gas export capacity by 2029, responding to recent international agreements.
LNG industry could reduce emissions by 60%, according to IEA
A study by the International Energy Agency reveals that global emissions from liquefied natural gas could be significantly reduced using current technologies.
Europe accelerates gas storage filling despite declining reserves
Europe is injecting natural gas into underground storage facilities at a three-year high, even as reserves remain below historical averages, prompting maximized imports of liquefied natural gas (LNG).
Seoul freezes electricity rates amid LNG supply risk concerns
South Korea abandons plans to lower electricity rates this summer, fearing disruptions in liquefied natural gas supply due to escalating geopolitical tensions in the Middle East, despite recent declines in fuel import costs.
Russia ready to deliver liquefied natural gas to Mexico
Russia positions itself to supply liquefied natural gas to Mexico and considers expanded technological sharing in the energy sector, according to Russian Energy Minister Sergey Tsivilyov.
Israel resumes gas exports to Egypt and Jordan
Israel has partially resumed its natural gas exports to Egypt and Jordan following a week-long halt due to the closure of two major offshore gas fields, Leviathan and Karish.
Nepal Identifies Major Methane Reserve Estimated at 112 Billion m³
Nepal reveals a significant potential reserve of methane in the west of the country, following exploratory drilling conducted with technical support from China, opening new economic prospects.
Petronas and JOGMEC Sign Strategic Agreement around LNG Canada Project
Petronas formalizes a memorandum with JOGMEC to secure Japanese LNG deliveries, including a first cargo from LNG Canada scheduled for July at Toho Gas.
Serbia negotiates gas deal with Gazprom at competitive European price
Belgrade is currently finalising a new gas contract with Russia, promising Europe's lowest tariff, according to Srbijagas General Director Dusan Bajatovic, despite Europe's aim to eliminate Russian imports by 2027.

LEGAL

FOSSILS

POLICY

RENEWABLE

PLUS

© XMARKET PUBLISHING

Welcome

Your subscription

Included in this subscription:

COMMUNICATE ON ENERGYNEWS