LNG: At Least One US LNG Cargo Diverted to Japan: Platts

At least one US LNG cargo has recently been diverted to Japan from South Korea due to concerns over low inventory, according to Platts.

• The cargo, loaded from Freeport, Texas, June 30, was originally bound for South Korea but is now headed for JERA’s Chita terminal in Japan. Expected arrival is July 31.
• Neither JERA nor Kogas confirmed whether the redirection was part of an LNG swap under their cooperation agreement. However, a Kogas official stated that the company had recently completed a successful LNG volume swap with JERA.
• The move follows previous swap trials between the two companies, announced at the 2023 LNG Producer-Consumer Conference in Hiroshima.
• JERA has reportedly been seeking additional spot LNG cargoes for late July and early August. Japan’s power sector is facing a fuel shortage, with stocks expected to drop to a critical level by 27 July.
• OCCTO data shows fuel inventories could fall to 10.393 TWh, roughly four days’ worth of average electricity consumption.