JERA wants more storage in LNG supply chain
JERA chairman Hendrik Gordenker has stressed on the importance of sufficient storage in the LNG supply chain, saying his company would enhance vessel operation to manage its inventories.
In the Oil and Money 2018 conference, Gordenker pointed out that the LNG industry has not made enough investments in storage facilities as a whole.
Its absolutely key[But] in a lot of places, its not that easy to build storage capacity, Gordenker said.
Sufficient storage would help Japan and other North Asian countries, whose demand tends to spike in winter, mitigate the impact from the seasonality of their consumption pattern better, he said.
In addition, more storage can increase available prompt LNG supply, leading to more liquidity in spot trading activity and possible development a widely used market index, according to Gordenker.
For the Japanese company itself, JERA will have two LNG tanks coming online in Tokyo Bay. They are going to make...[great impact on] how we can run our operations, Gordenker said.
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Moreover, JERA, which generally controls approximately 15 LNG tankers, will optimise its shipping capacity during logistics operations to create the effect of floating storage, he added. Such manouver will give the company more options to deal with various market conditions, according to Gordenker.
In general, cargo owners like JERA often slow down the speed of their fleet when they have high inventories or prompt req....