A senior business official informed reporters on April 28 that JERA, the largest power generation firm in Japan, purchased a record 7 million mt of spot LNG in the fiscal year 2022–23 (April–March), up 56% from the previous record high of 4.5 million mt in the prior fiscal year, as reported by S&P Global.
Increased spot volume
JERA, the operator of the Freeport LNG project, has reported an increase in spot LNG procurement for the fiscal year 2022-23 due to an outage at the US Freeport LNG plant. JERA, which has a 25.7% stake in the project, attributed the increase in spot volume to its inability to procure Freeport LNG. The company expects to resume normal liftings from the Freeport terminal in the next fiscal year, following the full resumption of operations at the terminal. The Freeport LNG plant received permission from US regulators in March to resume commercial operations after a lengthy outage.
LNG procurement boosted
JERA’s spot LNG procurement for FY 2022-23 was mainly boosted due to the eight-month outage of Freeport LNG, where JERA has a 25.7% stake. The company expects to resume normal liftings from the terminal in FY 2023-24 after the full resumption of operations. JERA has been increasing its spot LNG procurements to ensure a stable electricity supply. It cut its LNG use for thermal power generation for FY 2022-23 by 8% but increased its coal consumption by 7.1% due to the commercial start-up of a coal-fired unit.
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Source: S&P Global
