Japan's top power generator JERA expects the temporary suspension of US liquefied natural gas (LNG) export permits may affect Japan's fuel security, and the world's, if the issue persists, a company official said on Wednesday.
JERA is one of the world's biggest LNG buyers and Japan is the world's second-biggest buyer of the super-chilled fuel after China.
US President Joe Biden last week paused approvals for pending and future applications to export LNG from new projects, a move cheered by climate activists that could delay decisions on new plants until after the November 5 election.
“We are not aware of any immediate affect from the US action,” JERA head of global investor relations Tetsuo Yoshida told a news conference.
“But the US is the world's largest LNG exporter, so if this issue persists. It could affect the LNG security not only for us, but also for Japan and the world,” he said.
JERA, which has signed a 20-year agreement to buy 1-million metric tonnes a year of LNG from Venture Global LNG's Calcasieu Pass (CP2) plant in Louisiana, will work with the public and private sectors to address the issue while keeping a close eye on the situation, Yoshida said.
On Tuesday, Japan's industry minister Ken Saito raised concerns over the US suspension of LNG export permits and said the Japanese government will take necessary steps to ensure Japan's stable energy supply is not compromised.
JERA, a joint venture between Tokyo Electric Power Company Holdings and Chubu Electric Power, returned to profit in the April to December period, backed by lower fuel costs and stronger earnings in its renewable energy and overseas power businesses.
Net profit was ¥338.9bn (R43.3bn) for the nine months to December 31, against a loss of ¥133.2bn (R16.97bn) a year earlier.
Reuters
US LNG export permit pause may affect Japan's fuel security — JERA
Image: REUTERS/Dado Ruvic/Illustration/ File photo
Japan's top power generator JERA expects the temporary suspension of US liquefied natural gas (LNG) export permits may affect Japan's fuel security, and the world's, if the issue persists, a company official said on Wednesday.
JERA is one of the world's biggest LNG buyers and Japan is the world's second-biggest buyer of the super-chilled fuel after China.
US President Joe Biden last week paused approvals for pending and future applications to export LNG from new projects, a move cheered by climate activists that could delay decisions on new plants until after the November 5 election.
“We are not aware of any immediate affect from the US action,” JERA head of global investor relations Tetsuo Yoshida told a news conference.
“But the US is the world's largest LNG exporter, so if this issue persists. It could affect the LNG security not only for us, but also for Japan and the world,” he said.
JERA, which has signed a 20-year agreement to buy 1-million metric tonnes a year of LNG from Venture Global LNG's Calcasieu Pass (CP2) plant in Louisiana, will work with the public and private sectors to address the issue while keeping a close eye on the situation, Yoshida said.
On Tuesday, Japan's industry minister Ken Saito raised concerns over the US suspension of LNG export permits and said the Japanese government will take necessary steps to ensure Japan's stable energy supply is not compromised.
JERA, a joint venture between Tokyo Electric Power Company Holdings and Chubu Electric Power, returned to profit in the April to December period, backed by lower fuel costs and stronger earnings in its renewable energy and overseas power businesses.
Net profit was ¥338.9bn (R43.3bn) for the nine months to December 31, against a loss of ¥133.2bn (R16.97bn) a year earlier.
Reuters
MORE:
Red Sea disruptions not (yet) enough to trouble LNG prices: Russell
Yemen's Houthis threaten to hit US ships as more tankers steer clear
Africa rides wave of floating LNG tech
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most read
Latest Videos