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Japan / China / KoreaMarkets/Clean Energy

Astomos to consolidate LPG imports and shipments in Tokuyama

Liquified petroleum gas (LPG) importer, Astomos Energy, announced on Jan 12 that it would terminate imports and shipments of LPG from Idemitsu Kosan Co Ltd's Oura terminal (Idemitsu Oura). Astomos would stop imports soon and shipments of barge cargoes and truck lots are scheduled to end at the end of March. Shipments would be consolidated to Idemitsu's Tokuyama secondary terminal (Idemitsu Tokuyama).

 

Idemitsu Oura has long been faced with aging terminal facilities and increasing supply costs. Considering these factors and the supply/demand situation in the surrounding areas, Astomos decided to suspend the use of Idemitsu Oura since it could consolidate LPG delivery from Idemitsu Tokuyama. LPG would be supplied to Idemitsu Tokuyama from near import terminals, such as the Kyushu LPG Fukushima terminal, Namikata terminal, or Sakaide terminal. According to Astomos, the Idemitsu Tokuyama terminal can supply LPG with its existing capacity, so there is no need to expand its facilities.

 

While LPG demand in Japan is expected to decline due to a decrease in population and decarbonization, supply and maintenance costs of facilities are increasing. Thus, balancing the operation of large-scale import terminals and stable supply is a challenge, not only for the Idemitsu Oura but also other terminals. In June 2023, Astomos and GYXIS Corp announced the termination of the use of the Hekinan LPG terminal and the joint use of Idemitsu's Aichi terminal (Idemitus Aichi). Although Astomos said that it had no concrete plans for the next terminal consolidation at this time, views are heard that LPG terminal consolidation may proceed in other areas as well, including the Keihin area where import and the secondary terminals are concentrated.

 

Meanwhile, Idemitsu is planning to supply more than 1mil tons of carbon-free ammonia by 2030 and establishing supply chain at the Shunan complex where Idemitsu Oura and Idemitsu Tokuyama are located. Idemitsu is said to be considering converting LPG tanks at Idemitsu Oura into ammonia storage tanks, and "Idemitsu Oura may eventually turn into a terminal for ammonia," said a market source.

 

Tokyo : LPG Team  Kashiwabara   +81-3-3552-2411Copyright © RIM Intelligence Co. ALL RIGHTS RESERVED.