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Kansai Electric cutting LNG deals as it boosts nuclear power

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LNG Industry,

According to Reuters, Japan’s Kansai Electric Power Co will begin cutting spot purchases of LNG and is cautious regarding the signing of further long-term LNG supply contracts as it begins reincorporating nuclear power back into its power-generation mix.

Prior to the Fukushima nuclear disaster in 2011, Kansai Electric was the most reliant utility on nuclear energy in Japan. Nuclear reactors accounted for approximately half of its power production.

Of the eight reactors that have resumed generating power in Japan – one fifth of available units – after passing stringent safety standards imposed following the disaster, four are from Kansai Electric.


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The company, which in total has seven reactors under its control, ramped up its nuclear plant utilisation rate to a six-year high of 18 percent in 2017/18. This came after three years of almost zero usage and reduced its LNG consumption by 16.3% to 7.56 million t.

The utility will reportedly continue this trend and adjust its LNG acquisitions accordingly. Spot and short term LNG purchases will be the first to go. These currently account for approximately 20% of the company’s LNG total.

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