Tokyo Electric Power Co., which produces about a quarter of Japan's electricity, may increase imports of liquefied natural gas by 50 percent to compensate for output lost as a result of the loss of nuclear power facilities due to last month's earthquake and tsunami.
The closure of 14 percent of the utility's capacity will force it to boost foreign LNG purchases by 5 million to 10 million metric tons annually in the next three to five years, according to a Bloomberg News survey of four traders and analysts. The extra cost may be around ¥500 billion, based on Finance Ministry data for last year's average price.
Tepco is attempting to contain radiation leaks at its Fukushima No. 1 plant in what has become the worst nuclear accident since the 1986 meltdown at Chernobyl. The utility is also being urged by the government to take steps to avert blackouts in the capital and eight surrounding prefectures, an area that accounts for about 40 percent of Japan's gross domestic product.