High temperatures boost LNG demand in Japan

A Japanese nuclear power station. (Tepco)

Directional impact on forecast:
Bullish for spot LNG prices

Japanese LNG imports saw year-on-year declines in H1 2019 but are now receiving support from weather-related demand, which is anticipated to boost the country’s need for additional imported cargoes over the coming weeks.

Temperatures in parts of Japan have risen well above seasonal averages in recent weeks, driving up the need for air-conditioning and, consequently, electricity use. The increased demand for power is supporting higher requirements for gas-fired generation. High temperatures are forecast to persist...