Japan’s power utilities on course to rebuild LNG stocks

Market: Electricity, Natural gas
04/06/25

LNG stocks at Japan's main power utilities are steadily increasing ahead of the peak summer demand season, and the latest stocks already exceed 2024 levels.

The utilities held 2.26mn t of LNG inventories on 1 June, up by 4.6pc from a week earlier, according to a weekly survey by the trade and industry ministry Meti. This is higher by 1.3pc compared with 2.23mn t on 2 June 2024 and up by 7.6pc against 2.1mn t, the average end-June stocks over 2020-24.

Lower utilisation of gas-fired fleets to meet weaker electricity demand in the week to 1 June helped utilities increase LNG stocks. Gas-fed output averaged 22GW in the week to 1 June, down by 8.3pc from a week earlier, according to nationwide transmission system operator the Organisation for Cross-regional Co-ordination of Transmission Operators (Occto).

Reduced gas-fired generation came despite a 13pc weekly decline in base-load coal-fired output to an average of 18GW on 26 May-1 June. Oil-fed generation averaged at 158MW in the week, higher by 36pc from a week earlier.

Large parts of Japan experienced cooler-than-normal weather last week, which limited electricity use for cooling purposes. The country's power demand averaged 82GW over 26 May-1 June, down by 4.3pc from a week earlier, Occto data show.

Weaker power demand weighed on Japan's wholesale electricity prices and worsened generation economics for the country's thermal power plants, especially gas. Margins from a 58pc-efficient gas-fired plant running on oil-linked LNG averaged at -¥1.44/kWh (-$9.99/MWh) over 26 May-1 June. This is down from the average loss of -¥0.32/kWh a week earlier. The 58pc spark spread using spot LNG fell to an average loss of -¥2.20/kWh from -¥0.74/kWh a week earlier, based on the ANEA — the Argus assessment for spot LNG deliveries to northeast Asia.

Coal remained competitive in Japan's merit order. The dark spread of a 40pc-efficient coal-fired unit averaged at ¥1.99/kWh in the week to 1 June, despite a 38pc drop on the week, based on Argus' spot coal and freight assessments.

By Motoko Hasegawa

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22/06/25

US bombs nuclear sites in Iran: Update

Updates with remarks from President Donald Trump Washington, 21 June (Argus) — The US conducted air strikes on three nuclear facilities in Iran, President Donald Trump said Saturday evening. US bombers targeted the heavily fortified, underground facility at Fordow and sites at Natanz and Isfahan, Trump said on his social media platform. "The strikes were a spectacular military success," Trump said in a televised address Saturday night. "Iran's key nuclear enrichment facilities have been completely and totally obliterated. Iran, the bully of the Middle East, must now make peace. If they do not, future attacks will be far greater and a lot easier." Trump waited until after the US planes had left Iranian airspace before making the announcement. Israel's air and missile strikes, underway since 13 June, had already targeted those three facilities, in addition to some domestic energy infrastructure and urban areas across Iran. UN nuclear watchdog the IAEA on Friday warned of potential nuclear safety hazards from the ongoing Israeli attacks on Iran's nuclear facilities and cautioned Israel against targeting Iran's Busherh nuclear power plant and a nuclear research laboratory in Tehran. Washington-based military experts assessed that only the US Air Force had the right type of munitions to destroy Fordow. Involving the US in the Israel-Iran war is a watershed moment for Trump's presidency. Trump in the past decade has often lambasted his predecessors for involving the US in costly and fruitless military adventures in the Middle East. But he has changed his tune since the beginning of Israel's offensive on Iran, claiming that eliminating Iran's nuclear program was worth the US involvement. Trump, in his televised address, referenced the US' killing of senior Iranian military commander Qassem Soleimani in January 2020 — the last time US and Iranian forces directly exchanged fire. Tehran's response at that time involved missile attacks on US bases in Iraq that wounded more than 100 US military personnel, but drew no heavy US retaliation. The markets will closely watch Tehran's reaction to the US air strikes. Even before the US bombing raids, Trump's public musings about a possible US role in Israel's campaign against Iran in the past week spurred the oil industry and shipping sectors to increase the risk premiums embedded in their calculations. Most immediately at stake are Iran's 2.5mn b/d of crude, condensate and products exports, which mostly head to China. Oil markets are also concerned about the risk of contagion if Israel and the US draw retaliatory attacks elsewhere in the Mideast Gulf or jeopardize shipping through the strait of Hormuz — the global oil market's single most vulnerable chokepoint, through which pass about 17mn b/d of crude and products, or about a quarter of seaborne oil trade. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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US bombs nuclear sites in Iran

22/06/25

News

22/06/25

US bombs nuclear sites in Iran

Washington, 21 June (Argus) — The US conducted air strikes on three nuclear facilities in Iran, President Donald Trump said Saturday evening. The US bombers targeted the heavily fortified, underground facility at Fordow and sites at Natanz and Isfahan, Trump said on his social media platform. He said he would make a televised address at 10pm ET Saturday "regarding our very successful military operation in Iran". "A full payload of BOMBS was dropped on the primary site, Fordow," Trump said. Trump waited until after the US planes had left Iranian airspace before making the announcement. Israel's air and missile strikes, underway since 13 June, already targeted those three facilities, in addition to some domestic energy infrastructure and urban areas across Iran. UN nuclear watchdog the IAEA on Friday warned of potential nuclear safety hazards from the ongoing Israeli attacks on Iran's nuclear facilities and cautioned Israel against targeting Iran's Busherh nuclear power plant and a nuclear research laboratory in Tehran. Washington-based military experts assessed that only the US Air Force had the right type of munitions to destroy Fordow. Involving the US in the Israel-Iran war is a watershed moment for Trump's presidency. Trump in the past decade often lambasted his predecessors for involving the US in costly and fruitless military adventures in the Middle East. But he has changed his tune since the beginning of Israel's offensive on Iran, claiming that eliminating Iran's nuclear program was worth the US involvement. Trump's public musings about a possible US role in Israel's campaign against Iran in the past week spurred the oil industry and shipping sectors to increase the risk premiums embedded in their calculations. Trump since 13 June alternatively held out the prospect of diplomacy and discussed killing senior Iranian leaders. Even today, after the US air strikes, Trump posted that "NOW IS THE TIME FOR PEACE!". The markets will closely watch Tehran's reaction to the US air strikes. Most immediately at stake are Iran's 2.5mn b/d of crude, condensate and products exports, which mostly head to China. Oil markets are also concerned about the risk of contagion if Israel and the US draw retaliatory attacks elsewhere in the Mideast Gulf or jeopardize shipping through the strait of Hormuz — the global oil market's single most vulnerable chokepoint, through which pass about 17mn b/d of crude and products, or about a quarter of seaborne oil trade. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Pakistan loses EU GSP+ ethanol status

20/06/25

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20/06/25

Pakistan loses EU GSP+ ethanol status

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Cop 28 outcome must be implemented in full: Cop 30 head

20/06/25

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20/06/25

Cop 28 outcome must be implemented in full: Cop 30 head

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SEE gas operators propose changes to Route 1 product

19/06/25

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19/06/25

SEE gas operators propose changes to Route 1 product

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