SUBSCRIBE
PROFILE

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.

Share:

Restrictions LNG Japon

Subscribe for unlimited access to all energy sector news.

Over 150 multisector articles and analyses every week.

Your 1st year at 99 $*

then 199 $/year

SUBSCRIBE — 99 $ for the 1st year

Create a free account to read this article

*renews at 199$/year, cancel anytime before renewal.

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.

  • Popular on energynews.pro
India diversifies coking coal purchases, Australia retreats
Equinor, Shell and TotalEnergies launch the first subsea CO2 injection in Norway
Quebec allocates $1.5M to meet the demand for wind turbine technicians
Guidehouse forecasts $8.1 billion revenues for modular reactors by 2034
AMIGO LNG signs 15-year deal with Macquarie for 0.6 MTPA of LNG
CTCI wins TWD29.6bn contract for LNG regasification unit at Kaohsiung
CTCI strengthens its position in Taiwan with a new EPC contract for a regasification unit at the Kaohsiung LNG terminal, with a capacity of 1,600 tonnes per hour.
Exxon expects 20% increase in global natural gas demand by 2050
Exxon Mobil forecasts sustained growth in global natural gas demand by 2050, driven by industrial use and rising energy needs in developing economies.
Capstone secures 5.8 MW order in Mexico with major food manufacturer
Capstone Green Energy received a 5.8-megawatt order for its natural gas microturbines, to be deployed across multiple food production facilities in Mexico through regional distributor DTC Machinery.
Harvest Midstream acquires MPLX gas assets in western US for $1bn
Private firm Harvest Midstream has signed a $1 billion acquisition deal with MPLX for gas processing and transport infrastructure across three western US states.
Sempra Infrastructure and EQT sign 20-year deal for Texan LNG supply
Sempra Infrastructure and EQT Corporation have signed a 20-year liquefied natural gas purchase agreement, consolidating Phase 2 of the Port Arthur LNG project in Texas and strengthening the United States’ position in the global LNG market.
Subsea7 secures offshore contract up to $1.25bn with TP-OTC in the Black Sea
Subsea7 was selected to lead phase 3 of the Sakarya gas field, a strategic contract for Türkiye’s energy supply valued between $750mn and $1.25bn.
Japan challenges China’s installation of 21 gas platforms in the East China Sea
Tokyo protests against Chinese installations deemed unilateral in a disputed maritime zone, despite a bilateral agreement stalled since 2010.
Bp awards Baker Hughes a 90-month contract for Tangguh LNG in Indonesia
Bp has awarded Baker Hughes a long-term service agreement for the Tangguh liquefied natural gas plant, covering spare parts, maintenance and technical support for its turbomachinery equipment.
Sinopec deploys 65,000 Sercel sensors for 3D seismic survey in Mexico
Chinese group Sinopec has launched a large-scale seismic imaging campaign across 3,000 km² in Mexico using nodal technology from Sercel, owned by Viridien, delivered in August to map areas with complex terrain.
CNOOC signs two gas exploration contracts in Indonesia with EnQuest and Agra
CNOOC Limited has signed two production sharing contracts with SKK Migas to explore the Gaea and Gaea II blocks in West Papua, alongside EnQuest and Agra.
ONEOK and partners launch Eiger Express project to link Permian to Gulf
A consortium led by ONEOK is developing a 450-mile pipeline to transport up to 2.5 billion cubic feet of gas per day from the Permian Basin to the Gulf Coast.
AMIGO LNG awards Drydocks World the construction of the world’s largest FLNG
AMIGO LNG has awarded Drydocks World a major EPC contract to build the world’s largest floating LNG liquefaction terminal, aimed at strengthening exports to Asia and Latin America.
Canadian Utilities secures AUC approval for Yellowhead gas pipeline project
The Alberta Utilities Commission approves the Need Assessment Application for the Yellowhead Pipeline, marking a key step for Canadian Utilities, a subsidiary of ATCO. The project foresees significant economic benefits for the province.
Nigeria LNG Signs 20-Year Deal to Secure 1.29 Billion Cubic Feet of Gas
Nigeria LNG signs major deals with oil groups to ensure gas supply to its liquefaction infrastructure over two decades.
The European Union seals a $750 billion deal on American energy
The European Union and Washington have finalized an agreement setting $750 billion in U.S. gas, oil and nuclear purchases, complemented by $600 billion in European investments in the United States by 2028.
Sempra and ConocoPhillips Strengthen Partnership on Port Arthur LNG Phase 2
Sempra Infrastructure and ConocoPhillips signed a 20-year LNG sales agreement for 4 Mtpa, confirming their joint commitment to expanding the Port Arthur LNG liquefaction terminal in Texas.
Russia increases gas deliveries to China despite oil decline
Russian pipeline gas exports to China rose by 21.3% over seven months, contrasting with a 7.6% drop in oil shipments during the same period.
MCF Energy restarts gas drilling at the former Kinsau-1 well in Germany
MCF Energy continues operations at the Kinsau-1A drilling site, targeting a promising Jurassic formation first tested by Mobil in 1983.
Woodside accelerates LNG and dividends, adjusted capex and key projects advance
The group announces an interim dividend of 53 cps, production of 548 Mboe/d, a unit cost of $7.7/boe and major milestones on Scarborough, Trion, Beaumont and Louisiana LNG, while strengthening liquidity and financial discipline.
Norway exceeds its oil and gas production forecasts in July
Norway’s combined oil and gas production exceeded official forecasts by 3.9% in July, according to preliminary data from the regulator.

Log in to read this article

You'll also have access to a selection of our best content.

or

Go unlimited with our annual offer: $99 for the 1styear year, then $ 199/year.

SUBSCRIBE - €99