Japan's Largest Nuclear Plant Reconnects Online Amid Global Gas Market Volatility

Japan's Kashiwazaki-Kariwa nuclear power station, the largest in the world, has finally restarted one of its reactors after 14 years offline. Unit 6, a 1,356-megawatt Advanced Boiling Water Reactor, began generating electricity on April 16. The reactor was initially planned to restart on January 20 but faced delays due to technical issues.

The unit's restart is significant not just for Japan's energy mix but also for the global gas market. With Unit 6 back online, it will displace about 1.3 million tons of liquefied natural gas (LNG) per year, or roughly 62 billion cubic feet of gas imports.

Interestingly, the restart of Unit 6 coincided with the closure of the Strait of Hormuz, which accounted for over 20% of global LNG trade. Asian buyers had to turn to spot markets, driving up prices. The Japan-Korea Marker LNG price rose by 51% to $16.02 per million British thermal units by late April.