Page 11 - AsianOil Week 43 2021

AsianOil EAST ASIA AsianOil

Japanese LNG inventories hit

highest level in five years

PERFORMANCE JAPANESE inventories of LNG have hit their reported to have assured the government that
highest level in five years as the country seeks to they would make efforts to secure adequate sup-
avert energy shortages over the coming winter. plies for the coming winter.
The Japanese Ministry of Economy, Trade This year, competition on the spot market is
and Industry (METI) said this week that LNG already intensifying ahead of winter as countries
stocks held by the country’s main power compa- reopen their economies following pandemic-re-
nies had reached 2.3mn tonnes by October 15, lated lockdowns, energy demand rises and sup-
up by 700,000 tonnes year on year. LNG stocks ply challenges persist. Competition in the spot
held by Japan’s city-gas suppliers exceed the aver- market largely played out in Asia last year, but
age at this time of the year from 2015-2019, the this year it is set to be far more widespread, with
ministry added. Europe already competing with Asia for gas sup-
The country is trying to avoid the situation plies as it seeks to replenish depleted stocks.
it experienced last year, when supply issues However, Japan appears to be in a strong
combined with rising demand as a result of position to avoid another power crunch even
cold winter weather to result in intense com- if the weather is colder than usual, according to
petition for spot LNG cargoes and record-high METI, as long as utilities continue to buy fuel as
electricity prices. planned.
The LNG inventory data were disclosed at a A major factor in how things play out will be
rare meeting between METI and the senior exec- the weather – in Japan and more broadly. Tem-
utives of energy companies, which was held to peratures are already seasonally low in Japan,
discuss measures to avoid a repeat of the short- according to the country’s weather bureau, even
ages, according to Reuters. The executives are though winter is still weeks away.™

OCEANIA

Australia unveils net zero roadmap

POLICY THE Australian government has not only laid out Canberra expects that the govern-
its plan to achieve carbon neutrality by 2050 but has ment’s AUD20bn ($15.02bn) investment in
also thrown its support behind the country’s coal low-emissions technology over the next dec-
and natural gas producers and exporters. ade will unlock at least AUD80bn ($60.08bn)
Australian Prime Minister Scott Morrison worth of similar private and public invest-
unveiled the government’s Long-Term Emis- ment. The government has highlighted green
sions Reduction Plan on October 26, describing and blue clean hydrogen, carbon capture and
it as a “credible pathway” to net zero by 2050. storage (CCS) and energy storage as target
Morrison said the country had already areas for investment.
reduced emissions by 20.8% from 2005 levels Morrison said: “The plan will deliver results
and that the Technology Investment Roadmap through technology, not taxes. It respects peo-
would lower emissions by a further 40%. Global ple’s choice, and will not force mandates on what
technology trends are expected to reduce emis- people can do or buy. It guarantees that we keep
sions by 15%, high-integrity offsets will achieve downward pressure on energy prices and secures
a further 10% reduction and “future technology reliable power. It will ensure Australia continues
breakthroughs” are anticipated to close the gap. to serve traditional markets, while taking advan-
At the same time, and despite mounting pres- tage of new economic opportunities.”
sure, Morrison said the 2050 target would not be Energy and Emissions Reduction Minister
enshrined in law and that five principles would Angus Taylor, meanwhile, said the plan would
guide the plan to ensure that “Australia’s shift preserve existing industries and jobs, adding:
to a net-zero economy will not put industries, “It will not shut down coal or gas production,
regions or jobs at risk”. or require displacement of productive agricul-
These principles are: technology not taxes; tural land.”
expanding choices while avoiding mandates; The government has noted that Australia
driving down new technology costs; keeping is expected to reduce emissions by up to 35%
energy prices down; and being accountable for by 2030 from 2005 levels, above the targeted
the country’s progress. 26-28%.™

Week 43 28•October•2021 www. NEWSBASE .com P11