What a difference just a few years can make. In the aftermath of the 2011 Fukushima nuclear disaster that eventually saw Japan’s 50 nuclear reactors shut down due to safety concerns, the energy anemic country was forced to turn to even more LNG imports. The situation for Japan over the next few years became dire as it’s growing gas demand forced spot prices in the region to new highs, breaching the $20 per million British thermal units (MMBtu) price point in February 2014 – with little relief in sight at the time. In order to regain control over both exorbitant prices and unfavorable contract conditions, two of Japan’s largest electric utilities, Tokyo Electric Power and Chubu Electric formed JERA, a JV intended to combine both firms buying power to be able to strike more favorable deals. And it worked. Within a few years not only had the JV secured […]