Off-line reactors push Kansai Electric to imports Norway LNG

Kansai Electric has bought liquefied natural gas from Norway for the first time, according to a source of Reuters.

Following the nuclear power disaster at Fukushima, Japan's LNG imports have risen at a record pace as utilities ramp up gas-fired power generation. Some 80 percent of reactors are now off-line as public safety concerns have delayed restarts after checks for maintenance.

The likely expensive purchase illustrates the lengths Japan's troubled utilities must go to in order to obtain supplies.   
     
A cargo of Statoil's Snohvit LNG from Norway was expected to arrive at the western Japan port of Himeji, which will be only the fourth time that Japan has imported LNG from
Norway.

"They could have paid as much as $19 (per million British thermal unit)," a Tokyo-based LNG trader said. "We expect the price to rise to around $20 in the peak winter season."   

Market sources have estimated Asian LNG prices for November
at $17.5 and European LNG prices at $14.

Kansai Electric, which prior to the disaster got half of its annual power output from its nuclear plants, had a harder time than some other utilities in meeting peak summer demand.