Japan: future uncertainty, but potential upside [LNG Condensed]
Japan is by far the world’s largest single LNG importer and has been the undisputed titan of the Asian LNG market for decades, its policies determining everything from industry investment models to contract terms and prices. So the projections in a recent study by the Institute for Energy Economics Japan (IEEJ) make for sober reading. Not only does the IEEJ Outlook 2019 project thatJapanese gas demand -- all supplied by LNG – will fall in absolute terms from 117 bn m3 in 2016 to 96 bn m3 in 2050, but Japan’s share of overall Asian gas demand will plummet from 18% to 5.5% over the same period.
The base year for the projections is 2016, when almost all Japanese nuclear reactors were out of action, following the 2011 Fukushima nuclear disaster. Gas-fired power generation was thus atypically high. But this accounts for only part of the projected fall in LNG demand. Other factors include the expectation of muted economic growth, the government’s emphasis on energy efficiency and supply diversification, and the impact of coal, renewables and nuclear generation on gas-fired electricity output.
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Volume 1, Issue 2 - February 2019
> Japan: future uncertainty, but potential upside
> Which ship engine should a new ship owner shoot for?
> Argentina to join LNG production club
> Poland’s 2040 energy plan provides key role for LNG
> LNG Canada — a game changer for Canada’s gas industry
> Conference Report: EGC Vienna
and more!
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