In Japan, Hokuriku Electric Power Co is taking contingency measures after an interruption in Malaysian LNG supply.
Scarcity of LNG
In Japan Hokuriku Elec is increasing stocks of other fuels for power generation. Indeed, the company is turning to coal and oil. This decision comes after supply problems from Malaysia.
In October, Malaysia’s state-owned Petronas declared force majeure on supplies to a liquefaction terminal, Malaysia LNG Dua. This decision was the result of a pipeline leak caused by ground movement on the Sabah-Sarawak pipeline. These events took place on September 21.
Following these announcements, the president of Hokuriku Elec, Koji Matsuda, declared during a press conference
“We are taking a variety of steps such as increasing coal and oil inventories and purchasing power futures to prepare for any decline in LNG delivery volumes.”
The Japanese company is therefore seeking to ensure that there is no impact on the electricity supply of its customers. She is in daily contact with the supplier, although he refuses to say whether the company receives alternative supplies.
A tense context
Last month, Japanese Industry Minister Yasutoshi Nishimura met with Petronas CEO Tengku Taufik. It asked the company to continue its efforts to mitigate the impact of the supply disruption on Japanese customers. In response, Tengku Taufik said Petronas would work to mitigate the impact on customers in Japan.
This includes power companies that need an uninterrupted supply as winter approaches. When heating demand peaks, Japanese companies, including Hokuriku Elec, do not want to run out of electricity. In addition, the Russian Sakhalin-2 project, impacted by the conflict in Ukraine, increases the risks of supply to Japan.
Japanese utilities remain dependent on coal and LNG. However, they are facing increasing pressure to move away from fossil fuels to combat climate change. In addition, Japan is struggling to restart its nuclear power plants, following a tightening of regulations.
