Tohoku Electric Power Co. has released a tender to purchase a shipment of liquefied natural gas with a clause requesting that the cargo not come from Russia, in what may be the first LNG tender to specifically ban the pariah state.
The utility is seeking a spot LNG cargo for April to May delivery with loading ports excluding Russia, according to traders with knowledge of the matter. The company is in need of more LNG as an earthquake last week knocked offline a coal-fired power plant, boosting its dependence on gas generation.
While most Asian LNG importers have paused buying spot cargoes from Russia since the war in Ukraine began, traders until now haven’t seen a purchase tender that has been so specific in avoiding the country. The move will likely be repeated by buyers across the region, tightening available natural gas supplies just as the market is grappling with a shortage and sky-high prices.