According to preliminary data from the Ministry of Finance of Japan, Japanese thermal coal imports soared to a record in 2017 while LNG imports jumped for the first time in the last three years. Thermal coal (for power generation purposes) imports rose by 4.3% in 2017 to more than 114 Mt, while LNG imports increased by 0.4% to nearly 84 Mt, which is the first annual hike since 2014. This rise in LNG and thermal coal imports is explained by the gap in power generation left by the country's slow restart of its nuclear reactors. Japan now relies more on imported fossil fuels than before while the vast majority of its nuclear power plants remain idle. However, crude oil imports fell by 4.1% in 2017 to 3.2 mb/d, which is the lowest figure since 1988.
In line with rising fossil fuel imports, the import bill rose by 31.5% in 2017, to Yen 15,852bn (US$145bn): thermal coal import costs surged by 45% to Yen 1,276bn (nearly US$12bn), while LNG import costs rose by 19% to Yen 3,915 bn (US$36bn). Higher global oil prices contributed to a 29% increase in crude oil import costs to Yen 7,150bn (US$65.5bn).
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