PAPUA New Guinea LNG Project gas supply to Japan may see an increase from the original figures supplied through Japanese companies, TEPCO and Osaka Gas. And instruments are now in place to that effect.
An advisor for Tokyo Electric Power Company Incorporated told Post-Courier recently gas supply to TEPCO (~1.8 MTPA) and Osaka Gas (~1.5 MTPA) and that there was increasing pressure from the 10-member Federation of Electric Power Companies of Japan to increase the gas product from PNG.
Japan is the world’s biggest importer of liquefied natural gas, and 52 per cent of the PNG LNG Project product is used in Tokyo.
Demands were now coming from coming from Tokyo Denryoku (Fukushima Powerplant), Kyushu Denryoku (south), Chubu Denryoku (North) and Hokkaido Denryoku (North), Kansai Electric Power, Chugoku Electric Power and Shikoku Electric Power Ltd.
FEPC chairman Makoto Yagi at a recent address to the leaders of the world in Japan said the total thermal fuel and or gas consumption of the 10 power companies for FY2014 measured 16.17 million kL for oil, and 56.61 million tons for LNG.
Mr Yagi made mention to the fact that Japan was now looking for more business ties in the Pacific, singling out the PNG LNG Project.
Japan’s demand for natural gas has jumped in the wake of the devastating earthquake and tsunami in March 2011 that led to the Fukushima Daiichi nuclear accident.
Post-Courier was told yesterday that the world’s biggest LNG buyer, was no longer as interested in fostering LNG development from the US, Russia and East Africa as it had been a year ago and is now looking closely at PNG.
"About 60 per cent of Japanese LNG currently passes through the South China sea and we face a lot of risks, one of which is geopolitical risks and we are just trying to refocus on our energy security therefore looking towards PNG will be ideal," Kazuma Shimizu told Post-Courier.
"On record our Osaka Gas Co has acquired stakes in natural gas assets in Papua New Guinea but we have been working for more opportunities and our government is keen on this as well. Also one of Japan’s major company Mitsubishi Corp acquired stakes in natural gas of Papua New Guinea.
"Most of our Japanese utilities are seeking alternative supplies of natural gas to generate power and already with what we are using now from PNG, these Japanese companies are also keen to lock in new sources of gas to replace some existing supply deals, which are coming to an end as fields become depleted," he said.
By the financial year, Japan would have imported 95 million metric tons of LNG and used two-thirds of these volumes in domestic power generation.
PNG is said to benefit from the demand increase of electricity if Japan successfully has its way.
Post Courier