JERA expects LNG prices to remain stable as Qatar's repairs drag on and Europe builds up stocks
JERA, a Japanese company, expects the price of liquefied gas to remain relatively stable in the near future, because restoring Qatar's damaged LNG facilities from the war with Iran will take time, and Europe needs to replenish its stocks before winter.
Yukio Kani, Chairman and Global CEO of JERA, said at a press conference on Wednesday that prices could hold up well over the coming year and may not drop much.
Kani stated that it could take "more than two?to three?years" to restore the damaged LNG facilities in Qatar.
He said that European LNG inventories are low and Europe will need to build up their stocks ahead of the winter.
He said that if Europe is to follow through on its plans to avoid Russian gas imports it must secure additional LNG supplies at the spot market to continue to support demand.
JERA is Japan's top power generator and largest LNG buyer.
Kani stated that the utility is collaborating with several operators to explore ways to provide electricity to data centers, where demand is expected grow rapidly.
He said that a number of data center operators in Japan are interested in long-term power purchase contracts under a model where data centres would be built next to power plants, and then supplied with electricity directly.
He added that discussions are underway in the United States as well as Europe and Asia to find ways to meet the power requirements of hyperscale data centres. (Reporting and editing by Varun H K; Yuka Obayashi)
(source: Reuters)
