Japan's Tokyo Gas is considering to further accelerate optimizing its LNG procurement system. On 27th, it announced the group's management vision "Compass 2030" that says the Japanese gas company, which is promoting swap trading through joint procurement with UK-based Centrica, intends t expand its LNG transaction volume to 5 million mt by 2030.|
Takashi Uchida, President of Tokyo Gas, explained its strategy at a press conference on 27th, saying: "We do not intend to do paper trades with no physical transactions." Procuring LNG at a lower price and selling it at a higher price to earn margin has a risk. The company is considering to minimize the risk of physical transaction and promote swap trading based on areas, seasons, and calorific value etc.
In Japan, JERA's city gas calorific value adjustment facility adjacent to its Higashi-Ohgishima LNG terminal in Kawasaki will start operation in 2020 and then, the demand of 1 million mt per annum of LNG that Tokyo Gas is now supplying to JERA's Shinagawa gas-fired thermal plant will be lost. To compensate for the loss, Tokyo Gas intends to promote overseas trading and create the domestic demand to raise natural gas transaction volume from the current approximately 17 million mt to 20 million mt of LNG equivalent.