Japan utilities call for bigger strategic buffer LNG

TOKYO, Dec 2 (Reuters): Japan's power utilities on Friday called for an increase in the volume of the country's strategic liquefied natural gas (LNG) buffer (SBL) to ensure a stable fuel supply amid lingering risk of supply disruptions due to heightened geopolitical risks.
The world's second biggest LNG buyer after China, Japan has introduced the new SBL scheme for this winter to provide cover for any shortfalls in the event of an emergency, after last year's energy crunch.
As an accredited provider of the SBL, Japan's top power generator, JERA, will secure one cargo of LNG, about 70,000 metric tons, each month from December to February in preparation for the heating season.
Still, Japan should consider boosting the volume, Kazuhiro Ikebe, the chairman of Japan's federation of electric utilities, told a meeting of the country's LNG buyers, producers and traders with the industry ministry to discuss stable LNG supply.
"Considering Japan's total LNG imports volume, the impact of a major supply disruption would be significant," he said.