Trader Trafigura agrees loan facilities for LNG supply to Japanese utility

Global trader Trafigura said April 2 it had signed a loan agreement totaling $560 million to secure LNG supplies for an unspecified Japanese utility.

Trafigura said it signed a loan agreement of up to $390 million with the Japan Bank for International Cooperation (JBIC) and that the loan was co-financed with Sumitomo Mitsui Banking Corporation (SMBC) bringing the total co-financing to $560 million.

"The loan is intended to provide the funds required for a Japanese utility company to import LNG from Trafigura on term basis," it said in a statement.

Richard Holtum, global head of gas, power and renewables at Trafigura, welcomed the fact that the company had been trusted with helping a Japanese utility meet its energy needs and with securing stable supply to the Japanese market.

Trafigura pointed to growing global demand for LNG and the increasing uncertainty over resource prices, and that the loan facilities would support the Japanese utility in procuring term LNG.

Spot LNG prices continue to trade below $10/MMBtu and remain well down on their 2022 record highs.

Platts, part of S&P Global Commodity Insights, assessed the benchmark JKM price for delivery into Northeast Asia at $9.49/MMBtu on April 1.

In a separate statement, JBIC said it would continue to provide financial support to help secure a stable supply of "important resources" for Japan.

Japan has imported some 20.1 million mt of LNG so far this year, with Australia being the leading supplier of LNG so far at 7.4 million mt, according to data from S&P Global Commodity Insights.

Last year, Japan imported a total of 66.1 million mt of LNG, the data showed, with Australia supplying 27.6 million mt.