Asia Pacific: Storage
South Korea’s weak storage position in advance of the summer demand period is supporting the need for LNG imports.
South Korea had around 2.3 bcm of gas in storage at the start of June 2017, around 8% less than in June 2016. Stocks fell by around 1 bcm between June and August last year. This summer has been hotter than average, and warm temperatures look set to persist through September. This could weigh on stock levels and weaken South Korea’s storage position ahead of the winter. In contrast, Japan’s stocks at the start of June were around 4% above the average seen over the past three years. Japan’s storage volumes rose month-on-month during the summer last year. Requirements for storage builds are not expected to be enough to materially boost the country’s LNG imports over the coming months.