Japan LNG Importers Seek Late Summer Shipments as Stocks Fall

LNG stockpiles held by Japanese utilities fell 5.83% w/w to 2.1m tons in the week to June 9 from 2.23m tons the previous week, according to data released by the trade ministry.

• Volumes were above the previous five year average of 2.01m tons for the end of June but similar to last year at 2.08m tons.
• Importers could increase LNG purchased as hot weather and coal fired power outages are drawing on gas inventories. Utilities are looking for late summer deliveries while Tokyo Gas has bought a shipment for September delivery, according to Bloomberg.
• Imports to Japan last week fell 0.55m tons and South Korea 0.25m tons to take the Japan, South Korea, mainland China and Taiwan region to the lowest since November, according to BNEF.
• Stagnating demand, reintroduction of nuclear generation and higher levels of contracted supply have limited spot purchases so far this year.