Trafigura gets $560 million loan to supply LNG to Japan

Commodity trader Trafigura secured a loan worth about $560 million from two Japanese banks to supply liquefied natural gas (LNG) to a Japanese utility.

The state-owned Japan Bank for International Cooperation (JBIC) said in a statement it has signed on March 28 a loan agreement amounting to up to $390 million with Singapore-based Trafigura Pte Ltd.

Moreover, JBIC said the loan is co-financed with Sumitomo Mitsui Banking, bringing the total co-financing amount to about $560 million, meaning that Sumitomo Mitsui Banking will provide about $170 million.

The loan is intended to provide the funds required for a Japanese utility company to import LNG from Trafigura, JBIC.

It did not provide the name of the utility.

“Amid the growing global demand for LNG and the increasing uncertainty over resource prices, the loan, which supports the Japanese utility company in procuring term LNG through Trafigura, will contribute toward securing a stable supply of LNG, which is an important energy resource for Japan,” JBIC said.

Trafigura’s LNG volumes dropped 13.8 percent in the fiscal year ending September 30 while the company’s profit rose.

LNG volumes declined to 11.2 million tonnes compared to 13 million tonnes during the same period last year, which also declined from the previous year.

Trafigura buys LNG from various sources, including under a long-term deal with US LNG exporting giant Cheniere.

It recently signed LNG deals with Canada’s largest natural gas producer Tourmaline as well.

Japan’s LNG imports

China overtook Japan as the world’s largest LNG importer last year and Japan logged a decline in LNG imports during January-February this year.

State-run JOGMEC did not publish both the contract-based and the arrival-based monthly spot LNG price in January and February as there were less than two companies that imported spot LNG.

Japan’s METI recently said that Japan’s LNG inventories for power generation as of March 24 stood at 1.52 million tonnes, down 0.9 million tonnes from the previous week and the lowest level since the end of January 2021.

Citing a Jera spokesperson, Reuters reported on Friday that the power firm and LNG trader temporarily suspended production at LNG-fired power plants in Futtsu, Yokohama, Kawasaki and Chiba, all near Tokyo, and curtailed at Higashi-Ohgishima to secure sufficient LNG inventory.

“The move comes as a recent drop in temperatures in the Tokyo area boosted power demand while stormy weather caused delays in the arrival of LNG cargoes, causing a drop in LNG stock levels,” the report said.

JERA plans to bring the plants back to normal operations from Saturday, it said.

Most Popular

LNG carrier arrives to load first LNG Canada cargo

The 174,000-cbm GasLog Glasgow has arrived at the LNG Canada jetty in Kitimat to load the first LNG cargo produced at the Shell-led terminal, an LNG Canada spokesperson told LNG Prime on Saturday.

Knutsen, Shell name ninth LNG newbuild

Norwegian shipowner Knutsen and UK-based energy giant Shell have named the ninth and final LNG carrier in a series of 174,000-cbm vessels.

BP seals LNG SPA with Italy’s A2A

UK-based energy giant BP has signed a long-term liquefied natural gas (LNG) supply deal with Italian electricity and gas distributor A2A.

More News Like This

Jera plans to build new LNG units at Sodegaura power plant

Japan’s Jera plans to build new LNG-fueled units at its Sodegaura power plant in the Chiba prefecture, as part of its plans to replace aging facilities.

Japan reports lower May LNG imports

Japan’s liquefied natural gas (LNG) imports dropped by 4.3 percent in May compared to the same month last year, according to provisional data released by the country’s Ministry of Finance.

Argentina’s Enarsa gets offers for new LNG cargo tender

Argentina's state-owned LNG importer Energia Argentina (Enarsa) has received six offers for its third LNG cargo tender in 2025.

Japan’s April LNG imports climb

Japan’s liquefied natural gas (LNG) imports rose by 1.7 percent in April compared to the same month last year, according to provisional data released by the country’s Ministry of Finance.