Japan’s Toho Gas plans to use 3.08 mil mt of LNG in 2015-16, up 3.3%
Japan’s Toho Gas plans to use 3.08 million mt of LNG in the fiscal year to end March 2016, up 3.3% year on year, the gas utility said Tuesday, March 31.
Natural gas sales are forecast to rise 1.8% year on year to 4.067 billion cubic meters in fiscal 2015-16 (April-March), it added.
The growth in gas sales and LNG consumption comes as Toho Gas aims to tap into the power market ahead of a planned deregulation of the household electricity sector in 2016.
The Nagoya-based gas utility is expanding its Chita Midorihama LNG receiving terminal in Aichi, building a third LNG tank with a capacity of 220,000 cubic meters that is due for completion by August 2016.
The existing two tanks each have a capacity of 200,000 cu m.
In a five-year business plan released in March 2014, Toho Gas said it would aim to diversify supply sources and procure 20% of its total LNG procurement through short-term or spot deals.
A company spokesman said such deal currently comprise less than 10% of its procurements.
Toho Gas has also signed its first portfolio 10-year contract with Malaysia’s Petronas to buy seven to nine cargoes a year from April 2017.
The move comes as Toho Gas’ 20-year contract with Malaysia Dua to buy 280,000 mt/year is due to expire this year.
