TOKYO: Bucking the recent declining trend, Japan’s LNG imports jumped 9.4% to 7.72 million metric tons in August, data released September 21 by the ministry of finance showed. The world’s biggest LNG importer paid about $2.67bn for LNG imports in August, down 34.6% on year, according to the data. In contrast to LNG import volumes, Japanese coal imports for power generation dropped by 16.6% to 8.2 million mt.
Despite global LNG prices ruling low, demand for gas has been gradually declining in two major Asian consumers, Japan and South Korea. Japan’s LNG imports have been lower year-on-year for the last four months. On the other hand, emerging Asian countries such as India and China are witnessing robust LNG imports as consumers take advantage of attractive prices, with Singapore-based Pavilion Energy expecting these two countries to account for half of growth in LNG demand out to 2020. India imported 35% more LNG in August while China’s August imports were up 60%.
Japan was urged, in a report by the International Energy Agency released September 21, to take action to decarbonise its energy supplies. The shutdown of all Japan’s nuclear plants after the 2011 earthquake and tsunami led to a significant rise in use of fossil fuels and in LNG imports. Although annual LNG imports eased between 2014 and 2015, the country remains by far the world’s largest LNG importer.
