Exploration & Production

Warm summer weather in NE Asia to boost demand

A hot summer in Northeast Asia will boost demand for air conditioning, supporting requirements for gas-fired power generation and total gas consumption A hot summer in Northeast Asia will boost demand for air conditioning, supporting requirements for gas-fired power generation and total gas consumption.
By Catriona Scott 27 February 2017 0 24232
Futtsu thermal power station. Gas faces challenges in the power sector from nuclear in both Japan and South Korea. (Tepco)

Directional impact on forecast:
Bullish for Asian Spot LNG Prices

Warmer-than-average summers are forecast for both Japan and South Korea this year. Hot summer temperatures will boost demand for air conditioning, pushing up electricity demand. This will also support requirements for gas-fired power generation and total gas consumption.

Japan’s meteorological agency published its summer forecast last week, giving a 50% chance of above-average temperatures across the country between June and August. In South Korea, the meteorological administration’s forecast ranges from a 40% to at least...