Japan’s Utilities Call for Increased Strategic Buffer: Reuters

Japan’s power utilities called for an increase in the strategic LNG buffer (SBL) Dec. 1 , as geopolitical risks continue to stoke concerns of supply disruptions, Reuters reported.

• Japan has introduced the SBL scheme in the winter of 23/24 to cover any shortfalls during a supply squeeze. As part of the scheme, JERA will secure one cargo of 70k mt each month from Dec-Feb.
• Kazuhiro Ikebe, Chairman of Japan’s federation of electric utilities told a meeting that Japan should consider boosting volumes further.
• "Considering Japan's total LNG imports volume, the impact of a major supply disruption would be significant," he said. "So, public and private sectors should work together on further initiatives, including increasing the amount of the SBL."
• JERA President Hisahide Okuda also called for additional discussions on the SBL.
• LNG inventories among Japanese utilities are 2.33m mt as of Nov. 26, above the five-year average.