Page 4 - AsianOil Week 47 2022

AsianOil COMMENTARY AsianOil

Japan bundles up for winter

energy crisis and says long-

term LNG ‘sold out’

Energy import-dependent Japan is preparing for a tough winter ahead.

JAPAN JAPANESE politicians have resorted to giving put the focus on LNG.
fashion advice as the country prepares for a win- Japan relies on energy imports for almost all
WHAT: ter that could bring hiccups to energy supply. of its energy. The country’s worry over sufficient
Japan’s government is Tokyo Governor Yuriko Koike has urged the power supply has led it to bring a number of its
asking the entire country Japanese to wear turtleneck sweaters this winter nuclear power plants (NPPs) back online follow-
to conserve electricity in order to stay warm and be less reliant on home ing the 2011 tsunami and Fukushima nuclear
usage between December and office heating systems. crisis, and it has returned to coal to make up the
and the end of March. “Warming the neck has a thermal effect,” she slack in energy supply, although Tokyo remains
said. “I’m wearing a turtleneck myself and wear- committed to its net-zero programme. But LNG
WHY: ing a scarf also keeps you warm. This is one of is the preferred fuel for electricity generation and
The government is taking the tools to get through the harsh winter energy procuring sufficient stocks has proved challeng-
steps to pressure for a climate together,” she told reporters in Tokyo ing in a market where supply is short.
potential LNG shortage recently. While Japan appears to have secured suffi-
during the coldest The Japanese government has asked the cient supply to get through the winter of 2022-23,
months of the year. entire country to conserve electricity usage from concerns exist about energy supply consistency
December 1 until March 31 in the face of a global and about future winters as it becomes increas-
WHAT NEXT: LNG shortage. Conservation measures are in ingly clear that LNG is scarce and prices on the
Tokyo’s measures are place in order to prepare for a sudden increase global spot market have hit an exorbitant level.
prudent, considering in power demand that could arise with a sudden Japan’s Ministry of Economy, Trade and
recent outages in LNG drop in temperature or a glitch that could affect Industry (METI) said last week that long-term
supply. supply capacity. Prices for LNG have skyrock- contract supplies of LNG are sold out until 2026,
eted in the wake of Russia’s invasion of Ukraine setting the scene for fierce competition among
and actions taken by Western countries to halt major East Asian LNG importers like Japan,
the purchase of Russian energy sources, espe- China and South Korea, and probably even
cially pipeline gas to Europe, which in turn has Europe for the winter of 2023-24.

P4 www. NEWSBASE .com Week 47 28•November•2022