Japan’s JeraCo sees LNG volumes at 30 to 40 mtpa in 2030

Japan’s Jera Co, set to become the world’s top buyer of LNG this year, sees its contract volumes of the fuel at 30 to 40 million tonnes per annum (mtpa) in the 2030 business year compared with 40 mtpa this year, as it adapts to changes in the market.

Jera, a fuel joint venture set up by Tokyo Electric Power (Tepco) and Chubu Electric Power, will have 35 million tonnes of long-term liquefied natural gas (LNG) offtake commitments when the parent companies’ existing contracts are integrated into Jera in the summer.

Jera sees this falling to 15 mtpa in 2030, and it will procure the remainder via short-term and long-term contracts and spot buys, it said in its business plan.

Jera President Yuji Kakimi did not give a breakdown of purchases for 2030 but he has earlier told Reuters the company plans to significantly cut the amount of gas it purchases on long-term contracts.

Jera also targeted contracted coal volumes of 20 to 30 mtpa in fiscal 2030, up from about 20 mtpa this year.

Jera, which could take over the parents’ fossil fuel power plants next year, will also be trading several mtpa each of LNG and coal in 2030, Kakimi said.

“In the 2020s, oil-linked (LNG) purchases will fall significantly, and the weight of purchases linked to gas prices in the West and Asian market prices will rise,” he told reporters, resulting in more trading opportunities.

Jera expects to double its number of upstream projects in 2030 to about 12, including coal assets.

“What producers must do most amid dwindling LNG prices is cut costs,” Kakimi said. “We would like to support the projects where suppliers are engaged in aggressive cost-cutting.”

Jera appointed its external advisor and lawyer, Hendrik Gordenker, 57, as its new chairman from April.

Following is a summary of 2030 targets compared with 2016.

* Sees total assets of 2.8 trillion yen ($24.4 billion) vs. 600 billion yen.

* Sees revenues of 4.6 trillion yen vs. 2.2 trillion yen.

* Sees net profit of 280 billion yen vs. 20 billion yen.

* To add 12 gigawatt worth of domestic fossil power generation capacity vs. 650 megawatt.

* Sees overseas power generation capacity at 20 GW vs. 6 GW.

* To operate about 30 LNG vessels vs. 16 vessels in line with rise in procurement on free-on-board basis and expanding trading opportunities.

https://www.hellenicshippingnews.com/japans-jera-sees-lng-volumes-at-30-to-40-mtpa-in-2030/