Japan’s LNG Imports Grew in January; Indonesia Interested in U.S. Natural Gas
The Federation of Electric Power Companies of Japan on Monday said the country had imported a total of 5.23 million tonnes of liquefied natural gas (LNG) in January, compared over 4.12 million tonnes a year earlier.
The higher import figure meant to fill-up the country's need for power generation in the absence of its stalled nuclear power plants whose operations until now are suspended as an aftermath of the devastating earthquake and tsunami that hit Japan in March 2011. The tsunami caused a number of nuclear accidents, primarily level 7 meltdowns at three reactors in the Fukushima I Nuclear Power Plant complex.
The January imports gave a total of 87.43 billion kilowatt-hours of electricity for the month, a drop of 5.3 per cent from a year earlier, Reuters reported.
Meanwhile, the falling prices of natural gas in the U.S. have prompted Indonesian LNG buyers to express a more keener interest in importing LNG from the U.S.
Singapore state power utility PT PLN has said the company had received invitations from some U.S. gas producers and laid down tempting offers, The Jakarta Post reported. However, negotiations are still being discussed and no definite deal has been finalized. Even state oil and gas firm PT Pertamina is also interested to import LNG from the U.S., The Jakarta Post added.
"We're basically very interested in importing LNG from the U.S., however we need the gas from next year, while most of the U.S. producers will only start deliveries in 2018," Suryadi Mardjoeki, PLN oil-based fuels and gas division head, told the The Jakarta Post.
"The price is very low and that is why we will always be open to the possibility of importing gas from the U.S. If it's economical, why not?" Mochamad Harun, Pertamina spokesperson, said. Harun said Pertamina has been closely monitoring the gas prices in the U.S. compared with others in the international market. Although the company too had been negotiating with some U.S. gas producers, no final agreement has been made with any of them.
The Jakarta Post news did not detail the identities of the U.S. gas producers that PLN and Pertamina had been talking with.
Mr Mardjoeki said natural gas imports from the U.S. is cheaper because prices are more stable as it is based on actual production costs, compared with buying from the Asian market which are dependent on the fluctuating global oil prices.
PLN's gas consumption may reach 356.36 trillion British thermal units (Btu), up 25 per cent over a year ago, based on estimates that PLN announced earlier.