The Biggest LNG Buyer Is Set to Get More Supplies Than It Needs
- Japan's demand seen dropping as idled atomic reactors resume
- Surplus purchases may force reselling of cargo, add to glut
A man fishes in front of a liquefied natural gas (LNG) tanker berthed at Tokyo Electric Power Co.'s (Tepco) Futtsu gas-fired thermal power plant at night in Futtsu, Chiba Prefecture.
Photographer: Tomohiro Ohsumi/BloombergThis article is for subscribers only.
Japan is probably set to receive more LNG than it needs, potentially forcing some purchasers in the world’s biggest user of the fuel to resell cargoes and add to a glut.
Liquefied natural gas volumes contracted by Japanese buyers may exceed their combined demand from 2017 to 2021, according to a report compiled by the Ministry of Economy, Trade and Industry. The report, obtained by Bloomberg News, was distributed at a closed meeting attended by officials of the government and 14 companies including Royal Dutch Shell Plc, Jera Co. and Tokyo Gas Co.