Page 11 - GLNG Week 45 2022
P. 11
GLNG ASIA GLNG
China, Japan, South Korea
build energy stocks ahead
of winter demand
POLICY THE three big LNG importers in Asia are tak- inventories are above a five-year average, the
ing steps to build energy stocks before the onset news agency reported.
of winter, hoping to avoid the need to purchase The country also plans to restart thermal
LNG on the spot market, where prices are power plants (TPPs) and one more nuclear reac-
expected to exceed the current high level that tor earlier than planned, the report said.
has ensued since the start of Russia’s invasion of South Korea is also building LNG invento-
Ukraine in February 2022. ries, but looking to reduce its energy usage dur-
International sanctions, a halt in Russian ing the winter by 10% by urging consumers to
LNG exports to Europe – where demand for keep home lighting and heating down.
natural gas, and subsequently prices, have soared China’s gas supply situation looks secure
– plus a reduction in global LNG supplies have as it continues to produce its own natural gas
rippled across the industry, creating global eco- and import gas by pipeline from Russia along
nomic hardship. with Russian LNG. The country’s restrictive
China, Japan and South Korea are storing fuel no-Covid policies are expected to keep demand
from various sources, and conserving energy in check, erasing China’s need to approach the
to establish sufficient supplies for the colder spot market.
months, according Reuters news agency. The Nonetheless, China is continuing to push
measures include stockpiling fuel and urging ahead with a number of new LNG infrastructure
the public to cut back on power usage to ensure projects designed to enable China’s future energy
adequate supplies. A surge in the value of the security. The work includes expansion of existing
US dollar has reduced the value of the Chinese, facilities, but new terminals and storage tanks are
Japanese and South Korean currencies, making also being built, and long-term LNG supplies are
imports of energy even more costly, the report being negotiated.
noted. For the most part, energy supplies in China,
“Our basic approach is to have relatively high Japan and South Korea are seen as pretty secure
inventories during this winter … while adjusting by the International Energy Agency (IEA),
the delivery schedule of LNG tankers to reflect which in its latest gas report said that spot
demand,” Reuters quoted Hirofumi Sato, CFO imports for all of Asia fell 28% during the first
of Tokyo Gas, Japan’s biggest city gas supplier, as eight months of 2022 compared to a year ago.
saying. “If LNG from Russia is disrupted, we will China’s LNG imports fell by some 59% during
need to negotiate to take alternatives from other the period, according to the IEA. The agency also
suppliers,” he added. reported that LNG imports to Japan, Pakistan
Japan’s cost of crude oil, LNG and coal for and India were down as well by 17%, 73% and
September surged by 45.9% year on year and 22% respectively.
reached record levels of value, while LNG
Week 45 10•November•2022 www. NEWSBASE .com P11
