May 13, 2024 09:38 GMT
Japan LNG Demand Could Rise on Any Nuclear Delays
LNG
Japanese LNG demand could be boosted by up to 20 cargoes in the year to July 2025 from any delays to proposed nuclear power plant restarts in the country, according to BNEF.
- Five nuclear restarts are scheduled by 2025 and project delays, which could be for couple of months, would drive increased LNG demand to meet any shortfall in electricity generation.
- LNG spot purchases are to be limited by stagnating demand and higher levels of contracted supply. The share of spot LNG rose last winter, but Japan still procures 88% of gas from long-term contracts. Longer term LNG demand will decline due to the reintroduction of nuclear generation capacity.
- Japan’s gas fuelled power generation capacity is forecast to rise 3% in the coming two-years while coal will decline 3% and oil capacity by 4%.
- The decarbonization strategies of Japan’s government and its incumbent utilities could keep fossil-fueled power generation around for longer.
Source: BNEF
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