LNG tankers in Yokohama, Japan
Letter from Japan: Power market risks highlight LNG rework
Flexibility and sharing of risk in gas buying and selling is becoming more essential
LNG is a super-chilled commodity but for Japanese buyers it has become a little too hot to handle. Sellers insensitive to the new fundamentals in Japan beware.The familiar pattern was for Japanese power and gas utilities to acquire at least 80–85% of their demand under contracts stretching decades. That is increasingly going out of fashion, and the reasons are not only decarbonisation, a weak yen and trouble securing financing. Arguably the biggest factor is ‘gate closure’. The term refers to a point in time when electricity generators must submit their final expected output to the grid operator, about an hour before delivering on the promise. A day before the electricity is produced, utilit
Also in this section
21 April 2026
After overcoming a COVID-induced demand collapse with several years of successful market management, geopolitical events have conspired to provide the pact’s biggest test to date
21 April 2026
The regime’s policy of using nuclear ambiguity as a deterrent may have failed but it has realised it has other cards to play, while its neighbours are reappraising their approach to security
21 April 2026
As the global energy system undergoes a fundamental realignment, Algihaz Holdings has established itself as a critical player bridging conventional energy markets and the next generation of renewable infrastructure.
21 April 2026
The 25th WPC Energy Congress is taking place from 11-15 October 2026 at the Riyadh Front Exhibition & Conference Center.
