LNG stocks at Japan’s power utilities rise

: Electricity, Natural gas
25/04/02

LNG inventories at Japan's main power utilities increased during the week to 30 March, as warmer weather reduced electricity demand for heating purposes and limited gas-fired generation.

The utilities held 2.24mn t of LNG on 30 March, up by 22pc from a week earlier, according to a weekly survey by the trade and industry ministry Meti. This was higher by 51pc compared with 1.48mn t at the end of March 2024 and up by 10pc against 2.03mn t — the average end-March stocks over 2020-24.

A seasonal rise in temperatures weighed on power demand, which fell by 12pc on the week to 87GW across 24-30 March, according to the Organisation for Cross-regional Co-ordination of Transmission Operators (Occto). This resulted in a 24pc fall in gas-fired output to an average of 24GW during the period, the Occto data showed. Coal- and oil-fed generation also fell by 14pc to 23GW and by 21pc to 409MW respectively in the same period.

The lower demand has created extra supplies to be sold on the wholesale market. This has weighed on day-ahead prices on the Japan Electric Power Exchange (Jepx) and worsened generation economics for the country's thermal power plants.

Margins at a 58pc-efficient gas-fired unit running on oil-priced LNG supplies fell into negative territory, with the spark spread averaging at a loss of -¥2.28/kWh ($15.22/MWh) across 24-30 March, compared with the previous week's profit of ¥0.84/kWh. The 58pc spark spread using spot LNG widened the deficit, with the margin averaging at a loss of -¥3.79/kWh against the previous week's -¥0.80/kWh, based on the ANEA — the Argus assessment for spot LNG deliveries to northeast Asia.

Coal remained competitive in Japan's merit order. But the dark spread of a 40pc-efficient coal-fired unit also fell by 64pc on the week to an average of ¥1.63/kWh over 24-30 March, based on Argus' spot coal and freight assessments.

By Motoko Hasegawa

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

25/05/07

IMO GHG pricing falls short on green methanol, ammonia

New York, 7 May (Argus) — The International Maritime Organization's (IMO) proposed global greenhouse gas (GHG) pricing mechanism might not drive significant uptake of green methanol and green ammonia by 2035, given current market prices. Despite introducing penalties on high-emission fuels use and tradable surplus credits for low-emission fuels, the mechanism does not sufficiently close the cost gap for green alternatives. Under the system, starting in 2028 ship operators will face a two-tier penalty: $100/t CO₂e for emissions between the base and direct GHG intensity limit, and $380/t CO₂e for those exceeding the looser base limit. These thresholds will tighten annually through 2035. Ship operators can earn tradable credits for overcompliance when their GHG emissions fall below the direct limit. Assuming a surplus CO₂e credit value of $72/t — mirroring April 2025's average EU emissions trading system price — green ammonia would earn about $215/t in surplus credits in 2028 (see chart) . This barely offsets its April spot price of $2,830/t VLSFO equivalent in northwest Europe. Bio-methanol would receive about $175/t in credits, offering minimal relief on its $2,318/t April spot price. Currently, unsubsidized northwest Europe bio-LNG sits mid-range among bunker fuel options under IMO's emissions framework. While more expensive than HSFO, grey LNG, and B30 bioblends, the bio-LNG is cheaper than B100 (pure used cooking oil methyl ester), green ammonia, and bio-methanol. To become cost-competitive with unsubsidized bio-LNG — priced at $1,185/t in April 2025 — green ammonia and bio-methanol prices would need to fall by 57pc and 49pc, respectively, to around $1,220/t VLSFOe and $1,180/t VLSFOe by 2028. Unless green fuel prices drop significantly or fossil fuel prices rise, the IMO's structure alone provides insufficient economic incentive to accelerate green ammonia and bio-methanol adoption at scale. By Stefka Wechsler NW Europe, fuel prices plus IMO penalties and credits Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

UK, Norway pursue further ‘green industry’ co-operation

25/05/07

UK, Norway pursue further ‘green industry’ co-operation

London, 7 May (Argus) — The UK and Norway have signed an early-stage agreement for a "green industrial partnership", planning to work together on low-emissions technology such as offshore wind, carbon capture and storage (CCS) and hydrogen. The partnership will "strengthen energy security" and "support robust value chains for raw materials", the Norwegian government said. The collaboration also aims to "support the development of renewable energy sources, and further develop existing cooperation on the protection of subsea infrastructure in the North Sea", Norway's government added. Both Norwegian and UK representatives are in attendance at the Copenhagen climate ministerial this week — an event which often sets the direction for climate negotiations this year. The countries in December flagged their intent to partner on the energy transition, including developing an agreement on cross-border CO2 transport. Norway is a leader in Europe's developing CCS sector. The country's flagship Northern Lights CCS project is due to begin operating this summer. The project's partnership this week confirmed that all required permits are in place for the injection and storage of CO2. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

New German climate minister stresses nature angle

25/05/07

New German climate minister stresses nature angle

Berlin, 7 May (Argus) — Germany's new federal minister for the environment, climate action, nature conservation and nuclear safety today stressed the importance of "healthy nature" to protect the climate, and of renewable energies and "innovative" technologies to reduce carbon emissions in Germany. Environment minister Carsten Schneider, of the co-ruling left-of-centre SPD party, was sworn in on Tuesday evening with his cabinet colleagues. Schneider said he is looking forward to "driving forward climate action in the coming years, and to promoting the preservation and improvement of our natural resources in nature and the environment, for soil, water and air". Schneider said it is "good and right" to once again have national and international climate action, along with nature conservation and environmental protection, bundled in the environment ministry. Germany's last government split the climate dossier between the economy ministry, which was given the climate action portfolio, and the foreign ministry, which dealt with international climate policy. Previous economy minister Robert Habeck of the Green party last month criticised the decision to exclude climate action from the economy ministry, emphasising the "interlocking" between climate action, industry and energy policy. Schneider today underlined the crucial importance of "ambitious marine protection", and of continuing the previous ministry's natural climate protection action programme to boost the "important" ecosystems in forests, moors and bodies of water. The ministry will support cities and municipalities on nature conservation and climate adaptation, he said. Schneider made no mention of carbon markets or emissions trading systems. Schneider, the former special envoy for Germany's eastern states, is a budget expert with no climate or environment background. His permanent junior minister is Jochen Flasbarth, former permanent junior minister at the development ministry and a permanent junior minister at the environment ministry between 2013-21, at a time when the environment minister was responsible for climate policy. Flasbarth was involved in international climate negotiations, including the UN Cop 21 climate summit in Paris in 2015. Flasbarth is also a former president of federal environment office UBA. Flasbarth as junior development minister urged richer developing countries such as China or Saudi Arabia to contribute more to international climate finance . By Chloe Jardine Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Trump to end military campaign in Yemen: Update

25/05/06

Trump to end military campaign in Yemen: Update

Updates with details throughout, including Houthi response. Washington, 6 May (Argus) — President Donald Trump said today he will end the US military campaign against Yemen's Houthis, claiming that the militant group pledged to stop attacks on commercial ships passing through the Red Sea. The Houthis reached out with a request to stop the US bombing campaign, and the US will do so immediately, Trump told reporters at the beginning of his meeting with Canada's prime minister Mark Carney on Tuesday. "They don't want to fight anymore," Trump said. "They have capitulated ... And I will accept their word, and we are going to stop the bombing of the Houthis effective immediately." US secretary of state Marco Rubio, who also attended the meeting with Carney, added that if the Houthi attacks "are going to stop, then we can stop." Oman mediated a ceasefire agreement between the US and the Houthis, Oman's foreign minister Badr Albusaidi said in a social media post following Trump's remarks. "In the future, neither side will target the other, including American vessels, in the Red Sea and Bab al-Mandab Strait, ensuring freedom of navigation and the smooth flow of international commercial shipping." It was not clear from Albusaidi's statement whether the Houthis committed to stop their attacks on all vessels passing near Yemen's coastline. The Houthis claimed in late 2023 that, out of solidarity with Gaza's Palestinian population, they would attack any ship that was owned by an Israeli company or made calls at an Israeli port. But the Houthi attacks were indiscriminate, effectively crippling the regular passage of oil, LNG and other commercial vessel traffic through Red Sea waterways. The militant group paused its attacks on commercial shipping following the ceasefire in Gaza in January, but resumed them in March, after Israel stopped allowing humanitarian aid into Gaza. The Houthis also launched attacks against Israel, drawing retaliatory strikes by the Israeli Air Force, and on US naval vessels in the Red Sea. There was no explicit confirmation of a ceasefire from Houthi-controlled information outlets. A Houthi spokesman reposted a social media post suggesting that "America stopped its aggression in Yemen" and that "the one who retreated is America." Another media channel used by the group said that "the Israeli and American aggression will not pass without a response and will not deter Yemen from continuing its position in support of Gaza". US president Donald Trump's administration listed its military campaign against Yemen-based Houthis, which began on 15 March, as a key foreign policy accomplishment in his first 100 days in office even though the militant group continued to launch missile and drone attacks — most recently on 4 May against Israel's main airport. Israel responded to the 4 May attack with air strikes on Yemen's port of Hodeidah and, today, on the main airport in Yemen's capital Sanaa. Israel also vowed to retaliate against Tehran, which is the main provider of weapons to the Houthis. The US separately warned Iran to discontinue its military support for the Yemeni militant group. The Trump administration is engaged in talks with Iran to address Tehran's nuclear program, with Iranian officials hoping to use the diplomatic negotiations to press for relief of oil and other sanctions against Iran. Trump said he will visit Saudi Arabia, the UAE and Qatar next week and is widely expected to also visit Israel on the same trip. "Before then, we're going to have a very, very big announcement to make, like, as big as it gets, and I won't tell you on what," Trump said. "But it will be one of the most important announcements that have been made in many years about a certain subject, very important subject." By Haik Gugarats, Nader Itayim and Bachar Halabi Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US onshore crude output likely peaked: Diamondback

25/05/06

US onshore crude output likely peaked: Diamondback

New York, 6 May (Argus) — US onshore crude production has likely peaked as activity slows in response to the recent decline in oil prices, according to Diamondback Energy. The leading US independent estimates that the US hydraulic fracturing crew count is already down 15pc this year, while the frack crew count in the Permian basin has fallen by about 20pc from its January peak. Moreover, the US oil rig count is expected to be almost 10pc lower by the end of the second quarter with further declines seen. "As a result of these activity cuts, it is likely that U.S. onshore oil production has peaked and will begin to decline this quarter," Diamondback's chief executive officer Travis Stice said in a letter to shareholders. Given the shale sector has matured from the rapid growth seen in the early days of the shale boom, "this is not one of the types of declines that can be offset by improved efficiencies," Stice later told analysts on a conference call. Diamondback Energy also set out plans to cut spending and drill and complete fewer wells in the aftermath of the price slump, which has been driven by the economic fall-out over President Donald Trump's sweeping tariff policy, as well as the Opec+ group's plan to accelerate the return of barrels to the market. Capital spending is now seen at $3.4bn-$3.8bn this year, a decline of 10pc from the midpoint of previous expectations. The company will drop three rigs and one full-time completion crew in the second quarter, and expects to hold steady at those levels through most of the third quarter. If oil prices remain weak or fall further, Diamondback could reduce activity further. Or if prices rebound above $65, it could ramp activity back to previous levels. Under normal circumstances, it would use a period of lower service costs to build more drilled but uncompleted wells. But well casing, its biggest drilling input cost, has increased by 10pc in the last quarter due to steel tariffs. "To use a driving analogy, we are taking our foot off the accelerator as we approach a red light," said Stice. "If the light turns green before we get to the stoplight, we will hit the gas again, but we are also prepared to brake if needed." The impact on oil output is expected to be minimal given volumes have outperformed year to date. The company now sees annual oil production in a range of 480,000-495,000 b/d, down just 1pc from the midpoint of prior guidance. By Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more