Japan to buy up to 100 Mt LPG for national stockpiles
TOKYO (Reuters) -- Japan will likely conduct a tender in the autumn to buy up to 100,000 t of liquefied petroleum gas (LPG) for national stockpiles, a trade ministry official with direct knowledge of the matter said on Tuesday.
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| Photo Courtesy of Reuters. |
The fuel, often referred to as butane or propane, will be stored at a stockpiling base in Kurashiki in the country's west by the end of November.
The step comes as Japan looks to boost its LPG state stockpile to at least 50 days' worth of national imports, or about 1.38 MMt.
It wants to reduce the impact from any supply disruptions in the Middle East, which it relies on for supplies of the fuel, commonly used in heaters or stoves.
Japan currently has a total of 1.35 MMt in five LPG stockpiling bases with a total capacity of 1.5 MMt.
The trade ministry's Agency for Natural Resources and Energy has budgeted $42.7 MM for this fiscal year to buy 100,000 t of LPG, the official said, declining to be identified. He did not say how much LPG would be purchased in the November tender.
Meanwhile, the trade ministry has approved lowering the commercial sector's LPG reserve requirements to 40 days' worth of the nation's imports from 50 as state stocks are being increased.
Reporting by Osamu Tsukimori; Editing by Joseph Radford
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