RWE energy trading

German energy giant RWE Supply & Trading has entered into the Japanese energy trading market by establishing a new subsidiary in Tokyo.

The new subsidiary RWE Supply & Trading Japan will help the utility to expand its footprint in Asia. The new subsidiary is RWE’s second in Japan and will focus on LNG, oil, coal and biofuels energy trading once operational in autumn. In addition it is planned to offer cross commodity deals.

The new subsidiary will create innovative energy supply solutions, as well as concepts for risk management in industrial companies and ensure the commercial optimisation of the RWE power plants.

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RWE had entered into the Asian energy market by launching a subsidiary in Singapore in 2010. The utility went on to set up three additional offices in Asia with well over 50 employees.

In Japan the company plans to be active in physical and financial wholesale trading of various commodities, including LNG, oil, coal and biofuels.

RWE’s first subsidiary in Japan, RWE Renewables, had opened an office in Tokyo to drive the growth of offshore wind in Japan. Both subsidiaries will work hand in hand and use their complementary capabilities to further strengthen RWE’s position in the country.

Shinichi Kato, the president and country manager of RWE’s Renewables business in Japan also become a representative director of the new subsidiary.

Peter Krembel, the chief commercial officer of trading at RWE, said: “When it comes to our global growth strategy, Asia is certainly key.

“Our new subsidiary in Japan complements our existing Asian hubs and gives us the chance to enter a promising market – with strong physical demand and an attractive generation mix – at an early stage. The power trading market in Japan is still in its infancy. However, the Japanese government together with the exchanges and market participants have created a promising market environment. As one of the world’s leading trading houses we want to leverage our experience and capabilities gained in Europe and the US to help to continue this path.“

Frank Klepzig, the president of RWE Supply & Trading Japan, adds: “RWE Supply & Trading has already a good amount of existing relationships to utilities and trading houses in the Japanese market, especially in the field of LNG where we have delivered in excess of 7 million tonnes of LNG in the past few years and signed a Memorandum of Understanding with Tokyo Gas.

“We want to grow and strengthen relationships with our Japanese partners and additionally plan to serve industrial customers with innovative solutions and to offer hedging solutions to retailers, smaller generators and renewables. Our ambition is to become an active and visible trading partner for utilities and other wholesalers and traders in Japan.”