Japanese oil company buys on LNG spot market to ensure winter power supply

JERA Co., Inc. (“JERA”) has, based on this winter’s electricity supply-demand outlook, drawn up measures to address the heavy-load winter season (December 2021 to February 2022).

Last winter, factors such as a sharp increase in electricity demand caused by intermittent cold weather and a decline in LNG inventories that curbed power generation led to a tightening of electricity supply-demand. In addition, the government’s supply-demand verification report indicates that, with respect to the electricity supply-demand balance for this winter, an electricity reserve margin of at least 3% is expected to be secured for all periods and areas but notes that if monitoring of actual power capacity anticipates a deterioration in the supply-demand balance then the government and relevant organizations are to cooperate in taking measures to address supply-demand.

In order to avoid a recurrence of last winter’s fuel constraints and tightening of electricity supply-demand, JERA is taking measures to secure both “kW” (securing power capacity and conducting targeted inspections of power generation facilities) and “kWh” (supplying power to the electricity market and securing fuel).

Information Source: Read More

Oil and gas, press , | Energy, Climate, Renewable, Wind, Biomass, Sustainability, Oil Price, LPG, Solar