Japanese natural gas distributor Osaka Gas Co. posted a 1.3 billion yen ($9.9 million) loss for the April-December period, after a fire at the Freeport LNG plant which has yet to restart, the company said on Feb. 6.
The Freeport plant, which supplied Osaka Gas with 2.32 million tonnes of LNG per year, was shut down after a fire in June 2022, and has yet to restart operations.
Osaka Gas, which made a profit of 55.1 billion yen in the same period a year earlier, said losses related to Freeport's shutdown were at 125.8 billion yen and are expected to widen to 149.5 billion yen for the full year ending on March 31.
The revised annual loss estimate was 40 billion yen more than the company had expected in October.
The bigger-than-expected loss is 'mainly because of higher costs of buying alternative supply due to delays in resumption of Freeport LNG,' a spokesperson at Osaka Gas said.
Freeport is the United States' second-biggest LNG exporter.
Osaka Gas lifted its profit forecast for the full fiscal year on Feb. 6 to 36 billion yen from 29 billion yen in the previous forecast, on the back of additional income from the sale of cross-held shares, it said.
"For the latest earnings forecast, we have made a conservative assumption that we won't receive LNG from Freeport by the end of March, but we understand that the Freeport's process to get approvals from local authorities to resume operation is advancing and we hope it will resume partial operation soon," Osaka Gas spokesman added.
JERA, Japan's biggest power generator and another LNG buyer from Freeport, has also posted a nine-month loss mostly due to higher costs of alternative fuel amid a soaring spot market.
Recommended Reading
Texas Gas Vital to Mexico’s Nearshoring Boom
2024-10-25 - Continued U.S. piped-gas exports to Mexico bode well for Eagle Ford and Permian producers.
Small-ball Deals Plentiful, but Prices Vary
2024-10-25 - Despite a smaller IPO market and a fiscal discipline mandate, many small players continue to find and make deals in the U.S. oil patch, panelists said during Hart Energy’s A&D Conference in Dallas, Texas.
Nabors Takes to Global Expansion in 3Q as Rig Count Shrinks in Lower 48
2024-10-25 - Nabors Industries saw broad growth across key international geographies in third-quarter 2024, with more rig deployments expected.
EIG’s MidOcean Completes Acquisition of Additional 15% Stake in Peru LNG
2024-10-25 - MidOcean Energy now holds a 35% stake in Peru LNG. Hunt Oil will remain the operator of the South American export facility.
Energy Transition in Motion (Week of Oct. 25, 2024)
2024-10-25 - Here is a look at some of this week’s renewable energy news, including a U.S. Geological Survey-led study pointing to massive estimated lithium reserves in the Arkansas Smackover.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.