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High LNG Reserves To Weigh On Japan’s Summer Spot Demand: BNEF

LNG

LNG inventories in Japan are set to end the winter period at above-average levels, amid a mild winter, which will limit the country’s appetite for LNG this summer according to BNEF.

  • Japan’s LNG inventories held by city gas and electric utilities were estimated to be 5.1 million tons in January 2023, 44% above the four-year average.
  • BNEF projects total stockpiles to drop to 4.6 million tons by February assuming temperatures stay normal, which would be the highest level in four years.
  • Higher-than-normal LNG inventories and the ramping up of nuclear generation are expected to weigh on Japan’s LNG spot purchases this summer.

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