Platts: Japan's Kansai Seeks More Flexible LNG Contracts Amid Demand Uncertainty

Japan's Kansai Electric is looking to add more flexible contracts that will enable the utility to respond swiftly to changes in demand and adjust its portfolio by buying or selling volumes, a company executive said in an interview with Platts this week.

Kansai Electric, whose LNG procurement hit a record 9.44 million mt in fiscal year 2014-15 (April-March), faces growing demand uncertainty as the domestic retail market is set to fully open to newcomers in April next year, a measure which could dent or boost its electricity sales.

Timing of the restart of Kansai Electric's two Takahama 870-MW nuclear units also remains murky, and Japan's slow economic growth is adding another variable to the equation.

Against such backdrop, the Osaka-based power utility struck a deal with BP, under which BP would supply Kansai Electric with up to a total of 13 million mt of LNG over 23 years. MORE