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Japan's Hokuriku Elec takes back-up steps after Malaysia LNG disruption

(Reuters) - Japan's Hokuriku Electric Power Co is taking back-up measures after a disruption in supplies of Malaysian LNG, boosting stockpiles of other power generation fuels like coal and oil, its president said on Friday.

In October, Malaysian state-run energy firm Petronas declared force majeure on supply to a liquefaction terminal, Malaysia LNG Dua, following a pipeline leak caused by soil movement at the Sabah-Sarawak gas pipeline on Sept. 21.

"We are taking various measures like increasing coal and oil inventories and buying electricity futures in preparation for any drops in LNG delivery volumes," President Koji Matsuda told a news conference.

The Japanese company aimed to ensure there was no impact on power supply to its customers, he said, adding that it was in daily contact with the supplier, though he declined to say if the company had received alternative supplies.

Last month, Japanese industry minister Yasutoshi Nishimura asked Petronas Chief Executive Tengku Taufik to keep up efforts to mitigate the impact of the supply disruption on Japanese customers.

Taufik said Petronas would try to blunt the impact on Japanese customers.

These include electric utilities which need uninterrupted supplies as the approaching winter brings a peak in heating demand, against the backdrop of risks to supply from Russia's Sakhalin-2 project, amid conflict in Ukraine.

(Reporting by Yuka Obayashi; Editing by Clarence Fernandez)

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Editorial Comment
-Lee Nichols
Modern society would not be possible without the use of pipelines to transport natural gas, crude oil and finished products to demand centers.

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