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RTRS:UPDATE 2-Japan May crude, LNG imports jump on nuclear shutdowns
 
* Crude imports rise on year after 14 percent fall in April
* LNG imports up 26 pct, utilities buy more after March
quake
* Coal imports down due to power plant damage

(Recasts, adds details)
By Osamu Tsukimori
TOKYO, June 20 (Reuters) - Japan's oil and gas imports
gained sharply in May from a year ago to fuel power plants
running hard to compensate for nuclear reactors either crippled
by the March earthquake and tsunami or shut later due to safety
concerns.
The increased demand for liquefied natural gas (LNG) and
oil imports could peak in the summer as the country faces peak
demand amid power shortages as nuclear plant run rates fall.
Japan, the world's third-biggest oil consumer, imported 15.5
million kilolitres (3.14 million barrels per day) of crude oil
last month, up 6.9 percent from a year ago, finance ministry
data on Monday showed. That marks a recovery after imports had
fallen 14 percent to 16.97 million kl in April.
LNG imports by the world's top buyer of the fuel jumped 26
percent to 6.039 million tonnes, the data showed.
The use of crude and fuel oil by utilities is on the rise as
Japanese communities have increasingly opposed nuclear reactor
restarts as the crisis drags on at Tokyo Electric's
Fukushima Daiichi plant, which continues to leak radiation three
months after an earthquake and tsunami devastated the region.
Only 19 of the country's 54 nuclear reactors are operating,
leaving the world's third-largest economy turning to other
fuels, mainly liquefied natural gas (LNG) and oil, to try to
plug a power shortfall that could hammer its industry and
fragile economy during peak demand in the summer.


The 10 main utilities more than doubled their crude oil
consumption last month to 98,000 barrels per day (bpd), industry
data showed earlier this month.
Imports of thermal coal for power generation however fell
17.5 percent in May to 7.522 million tonnes, with some plants
along the northeast coast shut after the quake, the data showed.

LNG SPOT PRICE IN ASIA AT HIGHEST THIS YEAR
LNG spot prices in Asia LNG-AS remain at
the highest level this year as demand across the region rises
ahead of the summer peak.
The Japan Crude Cocktail (JCC)
price, or the average price for customs-cleared crude oil
imports, which is used as the benchmark for LNG prices for
Japanese buyers, rose to $118.58 a barrel in May, the highest
since $120.65 in September 2008.
That compared with $85.00 in May 2010
and a revised $111.88 in April.
In yen terms, the JCC price in May was 60,794 yen per
kilolitre, the highest since 67,012 yen in October 2008. That
compared with 49,708 yen a year earlier and a revised 58,358 yen
in April.
Competition for LNG is expected to strengthen in the
years to come as fast-growing China and India are striving to
switch to cleaner LNG against carbon-heavy coal and oil.

Already strong Asian LNG prices will get a further
fillip as Indonesia and Malaysia, the world's second- and
third-biggest exporters, turn to imports to feed local
demand.

DEMAND ESTIMATES
Estimates of Japan's demand for direct-burning utility
fuels, which has so far been lackluster in the aftermath of the
March Japan earthquake, are wide, ranging from 150,000 to
250,000 bpd, analysts and industry executives have
said .
Until May, however, there was
little sign of the need for an extra 200,000
bpd the IEA estimated , and oil
traders and companies holding stocks of crude and fuel oil ready
to cash in on a surge in demand from Japan's power plants may
have bought more than needed. (For analysis, click:

Japan continues to face serious shortfalls in
electricity supply in the wake of the March tsunami, with Kansai
Electric Power Co the latest major utility to call on
buyers to cut power use to avoid rolling blackouts.



(Reporting by Osamu Tsukimori; Editing by Edmund Klamann and
Joseph Radford)
Source