Refiners dust off fuel oil supply chains

Crisis avoided: LNG storage tanks and a tanker are seen at a power station in Futtsu. Japan narrowly averted blackouts last winter as LNG demand and prices soared during a cold snap. — Reuters

TOKYO: Japanese refiners are dusting off unused supply chains for fuel oil and getting coastal vessels and storage tanks ready after receiving requests from electric utilities to supply more fuel oil this winter amid a global crunch for power generation fuels.

Japan narrowly averted blackouts last winter as liquefied natural gas (LNG) demand and prices soared during a cold snap, and the situation this year may get even tighter as strong use and restocking in Europe and Asia draws down supplies and props up prices near record highs, executives and analysts said.