Regional LNG: TEPCO expects stable LNG supply this winter: Report

Japan's Tokyo Electric Power Co expects stable liquefied natural gas supplies for thermal power generation during the coming winter power demand season, a company spokeswoman was quoted by Platts as saying on Monday.

According to Platts, TEPCO bought 9.90 million tons of LNG during the first half of fiscal 2003-04 (ending March 2004), up 29.9 percent from a year ago. TEPCO hiked thermal power generation to make up for shortfall of nuclear power supply during the summer demand season.

The company was expected to buy 6-7 million tons (1.0-1.2 million tons per month) of LNG during the second half of the fiscal year, given its long-term LNG procurement contracts totaling 16-17 million tons per year. But TEPCO procured 1.5 million tons of LNG in October, a relatively high volume for a non-peak season month.

Indications from TEPCO are that it might lift more than 6-7 million tons for the October-March period, depending on the call on its power supply.

TEPCO's end-September LNG stocks were 0.93 million tons, up 62.7 percent from a year ago. Ample LNG availability is expected to limit TEPCO's crude and products purchases for thermal power generation.

The company's end-September fuel oil stocks were 3.02 million barrels, down 3.4 percent from a year ago, while crude stocks at 6.51 million barrels were up 16.7 percent on the year. The company bought 3.77 million barrels of fuel oil and 1.89 million barrels of crude in October. The company said it chooses the most economic fuel for thermal power generation.

TEPCO is currently operating only five of its 17 nuclear power units with a combined generation capacity of 17.3-mil kw. Four of the 12 idle nuclear units might be ready for restart in the near term after completing ongoing inspection and maintenance, but the company was not able to say when it might restart the units. (*)