Japan January crude imports fall 2.1pc yr/yr

TOKYO: The volume of Japan's customs-cleared crude oil imports fell 2.1 percent in January from a year earlier, government data showed on Monday, extending the downtrend into a third month, while imports of liquefied natural gas (LNG) hit a record high.

LNG demand in Japan, the world's third-biggest oil user and the top LNG importer, has been strong, reflecting the need for power generation to offset record low nuclear plant utilisation rates in the wake of the Fukushima crisis.

The country's 10 regional electricity utilities consumed a record amount of gas for power generation in January, industry data has shown.

Japan imported 18.83 million kilolitres (3.82 million barrels per day) of crude oil last month, preliminary data from the Ministry of Finance showed.

That compared with 19.84 million kl imported in December.

Japan's LNG imports, mainly from Qatar and Malaysia, totalled 8.15 million tonnes last month, up 28.2 percent from a year earlier and exceeding the previous record 7.545 million tonnes set in August.

Apart from electricity utilities, city gas suppliers also import LNG.

Japan's imports of thermal coal for power generation rose 7.9 percent from a year earlier to 10.03 million tonnes, the MOF data also showed.

Only three of Japan's 54 nuclear reactors were in operation by the end of January amid safety concerns after the March earthquake and tsunami triggered a radiation crisis at the Fukushima Daiichi nuclear power plant run by Tokyo Electric Power Co, leading to widespread contamination and mass evacuations.

Since then reactors shut for regular maintenance have been refused permission to restart until they meet new safety checks and get clearance from the central and local governments. Without such approvals, all of Japan's reactors could be shut by the end of April.

In contrast, the country's oil demand has been in a downtrend for more than 10 years as the population ages, fuel efficiency improves and energy sources diversify from costly oil to cleaner fuels such as gas.