TOKYO: Japan’s LNG imports are expected to drop to 81 million mt in the 2018-19 fiscal year which starts in April, down 2.2% from projected LNG imports of 82.8 million mt in the current fiscal year as more nuclear reactors restart, the Institute of Energy Economics, Japan said Tuesday.
The forecast is based on the assumption the number of nuclear reactors that have restarted would reach to nine by the end of fiscal year 2018-19 from the current five, according to the IEEJ.
Kyushu Electric’s two Sendai reactors, Kansai Electric’s two Takahama reactors and Shikoku Electric’s one Ikata reactor are currently in operation. The IEEJ also said 26.3 million mt/year of additional LNG supply capacity is expected in 2018-19, bringing the total global capacity to 304.7 million year.
Against this, additional demand of 14.8 million is projected next year with global LNG demand of 293.2 million. Some 40% of the 14.8 million mt expected additional demand 6 million mt of LNG will come from China, the IEEJ added.
Projected rises in oil price will likely push up Japan’s LNG import price, with the average expected at $9.7/MMBtu next year, while an average spot price for 2018 is expected at $6.4/MMBtu, the IEEJ said.
