The price of LNG = liquefied natural gas, which is used as fuel for power plants, has risen to a level more than 10 times that of the same period last year.
If it gets colder than expected in winter, it may lead to an increase in electricity prices.
LNG is shipped from overseas and used as fuel for power plants and as a raw material for city gas.
The spot price, which is the price for immediately trading LNG, reached a record high on the 6th of this month in the Asian region, more than 10 times the level of the same period last year.
The background is that China, which wants to promote decarbonization, is shifting from coal-fired power to natural gas-fired power, which emits less carbon dioxide, and is purchasing a large amount of LNG.
According to JOGMEC (= Oil, Natural Gas and Metal Mineral Resources Organization), China's import volume from January to September was more than 58 million tons, the first time for Japan, the world's largest importer, to have more than 56 million tons. It exceeded.
Many Japanese power companies procure about 80% of LNG under long-term contracts, and spot prices do not have an immediate effect.
However, in winter, when it gets colder than expected, it is necessary to purchase a large amount of LNG at the spot, which may lead to an increase in electricity prices.
The Ministry of Economy, Trade and Industry is urging companies to secure a large inventory in case of a cold wave.