Asia Pacific: Consumption

July 2017

Demand for gas from Japan’s power sector could weaken, driving overall declines in the country’s consumption over the coming months.

The power sector consumes around 70% of Japan’s gas, and strong offtake supported growth in the country’s demand at the start of the year. Colder-than-average temperatures in March and April helped boost the demand for gas for heating and electricity. This supported overall gas demand growth, which increased by 6% on an annual basis between January and April. However, more of Japan’s shuttered nuclear reactors are likely to come back online in H2, which will make the prospects for gas-fired generation more challenging over the coming months.