Kyushu Electric secures extra 250,000 kl oil, LNG for Jul-Sep
Tokyo (Platts)--28Jun2011/635 am EDT/1035 GMT
Japan's Kyushu Electric said Tuesday it had secured an additional 250,000
kiloliters (1.57 million barrels) of oil equivalent of oil and LNG for the
As a result, the Fukuoka-based power utility has secured a total 750,000
kl of its estimated additional 1 million kl demand for the July-September
Kyushu Electric's latest update on its additional fuels procurement comes
as Japan is about to enter its summer power demand season, which normally
In addition, the company said it might need a further 450,000 kl of oil
and LNG over July-September depending on summer weather and the length of its
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Of its additional 450,000 kl oil and LNG requirements, Kyushu Electric
has estimated that it would need 200,000 kl on the current weather outlook,
which is forecast to be hotter-than-usual in this summer, it said.
Kyushu Electric has also estimated that it would need an additional
250,000 kl by the end of September if the southwestern Japan based utility is
not allowed to restart its nuclear reactors, the company added.
As a result, Kyushu Electric now estimates a total of 1.45 million kl of
additional oil and LNG requirements over July-September, up from an earlier
estimate of 1 million kl.
Kyushu Electric has three nuclear reactors operating at present at a
combined capacity of 2.629 GW, representing 50% of its total nuclear capacity
of 5.258 GW across six units.
As Japan is about to enter its summer power demand season, Kyushu
Electrics' surplus supply capacity above its estimated demand for the summer
will be dropped to 3.5% if the Genkai and Sendai reactors remain shut until
then, the company said. This is below usual levels of 8-10%.
It remains unclear when the utility will be allowed by local authorities
to restart the 559 MW No. 2 and 1.18 GW No. 3 reactors at its Genkai nuclear
power plant in the country's southwest. On May 10, it also began a scheduled
two-month maintenance at its 890 MW No. 1 Sendai nuclear power plant in the
Sources earlier said it was unlikely Kyushu Electric will secure
approvals from local authorities to restart the nuclear units in the near
future. Japan has seen growing nuclear safety concerns as a result of the
ongoing Fukushima nuclear crisis following the massive March 11 earthquake.
Prior to the March 11 earthquake, Kyushu Electric planned to consume
360,000 kl of crude and fuel oil and 2.4 million-2.5 million mt/year of LNG in
the fiscal year ending March 2012.
Kyushu Electric has a mixed portfolio of power generation capacity,
including 5.26 GW of nuclear power, 5.36 GW of oil- and oil products-fired
power, 4.49 GW of gas-fired power and 4.18 GW of coal-fired power.
--Takeo Kumagai, email@example.com