Japan’s Power Utilities May Seek More LNG: Platts

Japan’s power utilities could look for additional LNG cargoes to meet demand for prompt delivery after a heatwave hit the country earlier than usual, sources told Platts July 8.

• "Japanese end-users will probably come out to buy LNG cargoes, maybe around 5 cargoes," an LNG trader told Platts. Another said that buyers were already checking August and September prices.
• Japan is supposed to be in its rainy season, but has seen a heatwave arrive, driving up power demand.
• Higher power prices are expected to encourage Japanese utilities to buy spot LNG cargoes and sell the electricity.
• Japanese gas companies usually don’t see demand rise in summer but may acquire LNG cargoes to produce electricity to take spark spread, Platts said.