Japan’s JERA posts a loss of $751 million. regarding the fire at Freeport LNG in FY22/23 – Elite News

TOKYO, Oct 28 (Reuters) – Japan’s biggest buyer of liquefied natural gas (LNG), JERA, said on Friday it plans to post a 110 billion yen ($751 million) loss related to a fire at US Freeport LNG. , primarily due to the higher costs required to purchase alternative fuel on the spot market.

Japan’s largest power generator assumes it will not receive enough LNG from the US project in October-March, Tetsuo Yoshida, general manager of JERA’s financial management division, told a news conference.

Freeport LNG, operator of one of the largest LNG export facilities in the US, said in August that it aimed to recover 85% of output from its fire-ravaged Texas plant by the end of November and achieve full operations for March. read more

“We were told that Freeport LNG will resume partial operations in early to mid-November, with all operations being restored in the first half of next year,” Yoshida said.

“Most of the loss related to Freeport LNG is higher acquisition costs for alternatives,” he said, adding that some facility repair costs would also be incurred.

When asked about a Malaysia LNG supply disruption, JERA does not expect a major impact on its fuel purchases, Yoshida said, declining to give details.

Malaysia’s Petronas has declared a force majeure on gas supplies to one of its floating terminals, Malaysia LNG Dua, due to a ground-moving leak on the Sabah-Sarawak pipeline on September 21. Read more

For the April-September period, JERA, a joint venture between Tokyo Electric Power (9501.T) and Chubu Electric Power (9502.T), reported a net loss of 131.5 billion yen, marking its first red ink for the period. since it began publishing results in 2018.

For the year to March 31, it forecast a net loss of 200 billion yen, due to losses related to Freeport LNG and the further impact of the “delay” before fuel price increases are reflected in fuel prices. electricity.

($1 = 146.5000 yen)

Reporting by Yuka Obayashi; Edited by Christopher Cushing and Stephen Coates

Our standards: Thomson Reuters Trust Principles.

Author: Sazid Ali

This is Sazid Ali years of experience in the field of journalism, Sazid Ali heads the editorial operations of the Elite News as the Executive Reporter.

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