Japan's JERA's 2023-24 spot LNG procurement volume decreased from a record high of 7 million tons the previous year to 4.5 million tons

Japan's largest power generation company JERA purchased approximately 4.5 million tons of spot LNG for power generation in the 2023-24 fiscal year (April-March), but the company executives revealed on 4/30 that it decreased 35.7% from a record high of 7 million tons in the 2022 to 23 fiscal year. .

Mr. Maekawa Naohiro, JERA Executive Officer and General Manager of the Financial Strategy Planning Division, stated at an online press conference that the company's spot LNG procurement volume for the 2023-24 fiscal year decreased by about 2.5 million tons from the abnormally high level in the 2022 to 23 fiscal year. .

Asked to comment on the 2024-25 spot LNG procurement outlook, Mr. Maekawa stated that JERA is planning “spot LNG procurement to a certain extent,” but declined further details.

On 2023/4/28, the company stated that the shutdown of the US Freeport LNG facility, where the company pumps 2.32 million tons of Freeport LNG per year, is the “main reason” for the increase in spot LNG procurement in the 2022 to 23 fiscal year. JERA also holds 25.7% of Freeport LNG Development Co., Ltd., which operates the Freeport LNG Project.

In the 2021-22 fiscal year, JERA purchased 4.5 million tons of spot LNG per year, which was a record high at the time.

JERA has greatly strengthened spot LNG procurement in recent years as part of aiming for a stable supply of electricity in response to changes in the electricity supply-demand balance between summer and winter.

JERA's LNG consumption in the 2023-24 fiscal year decreased 2.6% from the previous year to 23.01 million tons, and coal consumption fell 6.7% to 20.03 million tons. Fuel oil consumption was 207,000 kiloliters or 1.3 million barrels in the fiscal year ending March 31, compared to 29,000 kiloliters in the same period last year.

JERA sold 236.2 TWH of electricity in the 2023-24 fiscal year, down 7.4% from 255.1 TWh the previous year.