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Japan's February LNG imports fall 5.9% on storage withdrawals

Japan's imports of liquefied natural gas (LNG) dropped 5.9% in February from a year previously, data launched by the Ministry of Finance revealed on Thursday, as power manufacturers drew LNG from storage and increased usage of renewable energy.

Japan, overtaken by China last year as the world's top LNG importer, brought in 6 million metric lots of LNG last month, with imports below Australia, Japan's leading LNG provider, and from others, consisting of Qatar and Brunei.

However, products increased from Oman, the United States, Papua New Guinea and Russia, the data revealed.

For the first 2 months in overall, LNG imports decreased 8.2%, according to the information.

LNG storage levels at major energies stood at 1.95 million tons since March 3, down 15% from the start of February and listed below the five-year average of 2.13 million lots, the Ministry of Economy, Trade and Market data revealed.

Storage levels were further down to 1.52 million loads as of March 24, according to the information released on Wednesday, the most affordable because February 2022, Rystad Energy's Senior Analyst Masanori Odaka said in a note.

According to Odaka, an estimated 15.71 gigawatts (GW) of Japan's gas-fired plants will be down for maintenance in March and 16.3 GW in April. At the very same time, 16.1 GW of coal-fired plants will undergo upkeep in March and 16.6 GW in April.

Power demand, in general, is likely going to decline in April-May combined with extra output from renewable energy sources such as solar in the duration, the note said.

Japan's LNG imports fell by 8% to 66.2 million lots last year, the most affordable since 2009, following nuclear power restarts and increased usage of renewable energy.

(source: Reuters)