JERA says LNG stocks secured through October, sees no summer supply risk
FILE PHOTO: General view of the Negishi LNG Terminal, which is jointly operated by Tokyo Gas and JERA, in Yokohama, Japan October 17, 2019. REUTERS/Yuka Obayashi/File Photo
TOKYO, July 31 : Japan's top power generator JERA said on Friday that it has secured adequate liquefied natural gas inventories through October, and it sees no risk to stable power supply even if a summer heatwave boosts demand.
"We have secured sufficient LNG stocks for the peak summer demand season from August to October, and there are no issues regarding stable power supply," Masato Otaki, an executive officer at JERA, told reporters.
• JERA is Japan's largest LNG buyer, handling about 35 million metric tons annually.
• The utility will carefully manage inventories for the winter months by leveraging its global trading arm to optimize procurement, Otaki said, adding that Qatar represents only a small share of its LNG supply portfolio.
• Asked about a report that JERA plans to build a large-scale, gas-fired power plant in the U.S., Otaki said North American independent power producer (IPP) operations are a core business and the company is evaluating various projects, but declined to comment on specific plans.
• JERA, a joint venture between Tokyo Electric Power and Chubu Electric Power, reported April-June net profit of 123.1 billion yen ($766 million), up 31 per cent year-on-year, and forecast full-year net profit of 280 billion yen, up 86.4 billion yen from a year earlier.
• Otaki attributed the stronger earnings mainly to improved performance in domestic thermal and gas operations, particularly LNG and coal business.
• Higher-than-anticipated wholesale electricity prices boosted profits, he said. However, JERA is proceeding with the resale of long-term power purchase agreements (PPAs), including coal-fired power contracts, to help reduce costs for customers.
• "While this would weigh on our earnings, it would contribute to social stability in the long term and support more stable profits from next year onwards," he said.
($1 = 160.6700 yen)
