Japan to Buy up to 50,500 T LPG for National Stockpile

State-run Japan Oil, Gas and Metals National Corp (JOGMEC) has issued a tender to buy 50,000 to 50,500 tonnes of liquefied petroleum gas (LPG) for national stockpile.

 

The tender was in line with expectations. Reuters reported in May that Japan will likely conduct a tender in the autumn to buy up to 100,000 tonnes of LPG for national stockpiles.

 

JOGMEC is seeking propane for a stockpiling base in Kurashiki in the country's west for delivery by Nov. 15, a tender document showed. The tender will be held on Aug. 30, with offers to be evaluated the same day.

 

Japan is aiming to build up government LPG stockpile to around 50 days' worth of national imports to reduce the impact from any supply disruptions in the Middle East, which it most relies on for supplies of the fuel, commonly used in heaters or stoves.

 

Japan had a total of 1.35 million tonnes, or 49.5 days worth of national imports, in five LPG stockpiling bases in June with a total capacity of 1.5 million tonnes, government data showed this month.


(Reporting by Osamu Tsukimori; Editing by Gopakumar Warrier)