Natural Gas May Rise on Japanese LNG Demand
Natural gas futures gained in New York on below-average stockpiles and nuclear power generation that's near the lowest level in almost twelve years. Natural gas futures may rise on speculation that damage to nuclear reactors in Japan after the March 11 earthquake will divert cargoes of the fuel from the U.S., a Bloomberg News survey showed.
Japan may need to import as much as 1.5 million metric tons of natural gas scheduled for the Atlantic Basin to meet additional demand. Japan is the biggest user of natural gas, accounting for 35 percent of global trade.
Japan boosted spot imports of liquefied natural gas from the Atlantic Basin fivefold after a 2007 earthquake shut the Kashiwazaki-Kariwa nuclear plant. "The market is expecting more natural gas consumption in Japan for electricity generation," said Gordy Elliot, a risk- management specialist.