JAPAN DISASTER: TEPCO close to fulfilling LNG April requirement

24 March 2011 09:16  [Source: ICIS news]

SINGAPORE (ICIS)--Japan’s Tokyo Electric (TEPCO) has almost finished its procurement of LNG cargoes for April needed to ease its energy shortfalls following the 11 March earthquake, a source from the company confirmed late on Wednesday.

On Thursday, TEPCO restarted the 1GW No 1 unit of its gas-fired Higashi-Ohgishima thermal power plant located at Kawasaki in Kanagawa prefecture, which will allow the company to absorb more LNG, the source said.

"We have almost finalised our April procurement requirement," the source said.

Prompt requirements for April have been fulfilled by a combination of time-swap deals with other Japanese utilities and with other buyers in the Pacific region.

Additional volumes were sourced from TEPCO's long-term suppliers, the source added.

The company will focus mainly on the two front months of April and May in light of the severe power shortages it is facing on the back of the 11 March earthquake, the source said.

TEPCO has been implementing rolling blackouts in the areas it serves, including Tokyo, since 14 March. The company has also been urging people to reduce their domestic power consumption.

As for its requirements in May, the source confirmed that the utility still has a small requirement left for the month, but declined to specify the exact number of cargoes it needs.

Domestic utility Chubu Electric Power (Chubu) has diverted 60,000 tonnes of supply to TEPCO, while Osaka Gas has sent one cargo, the source said.

Click here for the latest news on the Japan disaster

By: Leslie Tan

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