Hokkaido Electric Power takes delivery of first US LNG shipment

Japanese utility Hokkaido Electric Power has received its first US LNG shipment for its 569.4MW Ishikari-Shinko combined-cycle gas turbine unit.

The LNG tanker Shinshu Maru arrived at the Ishikari import terminal on 21 September, carrying about 70,000t of spot LNG from the US' 15mn t/yr Freeport LNG in Texas. This is the first time Ishikari has taken cargoes from the US since the power plant started commercial operations in February 2019, widening its imports sources because of competitive prices from the US. Hokkaido has previously taken LNG cargoes from Malaysia, Australia and Russia. The company did not disclose its pricing formula for the US cargo.

Japan's preliminary LNG import costs from the US averaged $485.92/t on a delivered basis in August, while overall LNG import costs averaged $308.04/t, according to the finance ministry.

Hokkaido consumed 108,000t of LNG during April-June this year, up by 24.1pc from a year earlier, with cargoes bought through term agreements and on a spot basis.

Source: Argus