Reuters is reporting that Japanese demand for LNG is set to experience a rapid decline as the country’s nuclear reactors restart.
Kansai Electric Power will shortly be restarting the 870 MW no. 4 reactor at its Takahama station. This follows Kyushu Electric Power’s recent reboot of the 890 MW no. 2 reactor at its Sendai plant.
Kosho Tamura, a gas analyst at Japan Oil, Gas and Metals National Corp, has stated that each returning reactor will reduce demand for LNG by as much as 1 million tpy.
The return of Japan’s nuclear capacity is expected to lead to lower imports of fossil fuels, especially LNG. While this is positive for Japan’s utilities, especially in light of the near four-year highs LNG prices are currently reaching in Asia, the loss of Japanese demand will have a significant impact on the demand outlook for the global market.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/03092018/nuclear-restart-in-japan-threatening-asian-lng-demand/