Tokyo Gas Expects Japanese LNG Demand to Fall Below 80 mt in Five Years

Japanese LNG demand is expected to decline by 17 percent to less than 80 million tons in five years as more nuclear reactors restarts, Reuters quoted a Tokyo Gas official as saying Monday.  

"Last fiscal year, the imported volume of LNG was 89 million tonnes. By 2020, that demand could be reduced," said Shigeru Muraki, executive advisor of Tokyo Gas on the sidelines of the Singapore International Energy Week.

Japan has shut all its reactors after the deadly earthquake and tsunami of 2011.

Still, Tokyo Gas is looking to add 2 million to 3 million tonnes of LNG a year to its current annual offtake of 13 million tonnes as the company expects demand from its own customer base to increase, Muraki said, reported Reuters.

The Japanese utility will continue to use long-term contracts for its basic supply, Muraki said, but he expects traditional sellers to provide more flexibility to buyers, including not limiting contract cargoes to a single destination.