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AsianOil EAST ASIA AsianOil
Japanese LNG demand set for slow recovery
PERFORMANCE JAPANESE LNG demand is not expected to
recover fully this year, owing to the ongoing eco-
nomic fallout from the country’s coronavirus
(COVID-19) lockdown coupled with higher
than normal stockpiles of the fuel.
The Japan Gas Association (JGA) said last
week that city gas demand had fallen by 10% year
on year in April and by more than 20% in May.
Japan’s LNG imports fell by 8.8% y/y in April to
5.13mn tonnes, Ministry of Finance data showed
in May.
“An impact from the coronavirus pandemic
on our business is quite significant,” Reuters
quoted JGA chairman Michiaki Hirose as say-
ing on June 11.
Hirose said commercial demand had suffered
the most, with sales down 20-30% in April and
50% in May. Industrial demand followed, with
sales contracting 10-20% in April and 20-30%
in May.
“Things are slowly improving in June but
demand will largely stay weak,” he said. Hirose
warned that it could take a “long time” before
demand fully recovered.
“The surplus of LNG will be a serious man-
agement issue also for buyers, as we have com-
mitted to take a certain level of supply under the
long-term contracts with gas producers,” he said.
His concerns were echoed by industry
sources interviewed by S&P Global Platts on “Most factories in our region can’t run at
June 12. They said unusually high inventory full operations unless the entire supply chain is
levels and weak demand meant that not even a backed up by strong exports. Without this, our
hotter-than-average summer could improve the counterparts can’t predict demand accurately, so
outlook. They also warned that the full effects we also can’t have an accurate outlook on down-
of the lockdown on gas demand were only just stream demand and adjust procurement,” one
beginning to emerge. Japanese gas company source said.
OCEANIA
Santos’ Narrabri CBM
project takes next step
PROJECTS & AUSTRALIAN oil and gas developer Santos arriving at a final decision within 12 weeks of
COMPANIES has revealed that its controversial Narrabri coal- receiving the department’s report.
bed methane (CBM) project has taken another Santos managing director and CEO
important step forward. Kevin Gallagher said Narrabri’s approval
The company said on June 11 that the New was important to the state’s future economic
South Wales State government had referred the wellbeing as the country strives to counter
project to the Independent Planning Commis- the financial fallout from the coronavirus
sion (IPC) after the Department of Planning (COVID-19) pandemic.
recommending that the project was “capable of “Narrabri means more jobs and more
approval with conditions”. investment in NSW and the local region, and
NSW Minister for Planning and Public lower gas and electricity prices for customers
Spaces Robert Stokes has tasked the IPC with in the state,” Gallagher said. “Santos already
holding public hearings on the project and has appraisal wells powering the equivalent of
P8 www. NEWSBASE .com Week 24 18•June•2020
