Vitol is considering the Japanese market and has not yet finalised any strategies. Credit: Pand P Studio/Shutterstock.com.

European energy and commodity trading company the Vitol Group is assessing the potential of the Japanese electricity trading space, Bloomberg has reported.

The company is exploring the possibility of establishing a domestic office in Tokyo to engage in physical electricity trading but has not yet finalised strategies or timelines.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

It refused to comment on the matter when approached.

Since Japan liberalised its power market in 2016, it has seen an influx of foreign companies attracted by the market’s growth and increased volatility.

This volatility has been driven by factors such as the global shift away from fossil fuels, the impact of extreme weather conditions and the restarting of nuclear facilities.

Companies such as BP and Engie both established power trading desks in Tokyo in 2023.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The European Energy Exchange, which hosts power derivatives, reported a significant surge in the trading volume of Japanese power derivatives.

In January 2024, the volume rose a remarkable 357% compared with the same month of 2023.

Vitol, a major independent oil trader globally, has been involved in global power markets for more than ten years but along with others has come under scrutiny in the UK for trading strategies linked to rising energy prices.

In Japan, any company wishing to operate a power retail business or participate in the physical electricity market must secure a permit from the trade ministry.

Power futures contracts, however, do not need such government approvals and can be managed from abroad without significant regulatory hurdles. The company is already active in trading Japan power futures, conducting these operations from its Singapore office.