JBIC Signs A Loan Agreement Worth 100 Billion Yen

• JBIC said in a statement on Monday it had signed a loan agreement worth about 100 billion yen with Jera.
• Jera recently said it would resume operations at the sixth unit of its Anegasaki thermal power station in Chiba to provide extra capacity for this winter.

Japan’s Jera gets another loan for LNG purchases, reports LNG Prime.

Background 

The state-owned Japan Bank for International Cooperation (JBIC) and private sector financial institutions have conceded to deliver another loan to Jera to help it fund LNG purchases.

JBIC said in a statement it had signed a loan agreement worth about 100 billion yen ($673 million) with Jera. This loan would be co-financed with private financial institutions, it said.

The bank said the new loan would provide the necessary funds for Jera to import LNG since the prices resume to soar and to assure a regular supply of electricity in Japan.

Japan is looking to ensure winter LNG supply after the domestic electricity price rose last winter and the country encountered power scarcities due to short supply and demand observing drastic cold weather and low LNG inventories.

Jera said it would continue operations at the sixth unit of its Anegasaki thermal power station in Chiba to provide additional capacity for this winter.

Further details

Japan is the world’s largest LNG importer this year, mostly receiving LNG under long-term contracts from countries such as Australia, Malaysia, Qatar, and the US, but also the spot market.

LNG prices rose this year and Japan paid about $6.08 billion for its LNG imports in August and about $5.85 billion for September imports. Japan also took about 55.27 million tonnes of LNG in the January-September period.

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Source: LNG Prime

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