LNG inventories at Japan’s city gas providers are well above seasonal norms based on the latest data from those providers reported by Reuters. Japan and South Korea have also called for energy savings to avoid shortages this winter, while natural gas demand in China is expected to see its first annual drop in at least two decades this year due to sporadic Covid lockdowns across the country . However, natural gas supply risks remain amid a global energy crisis and Europe moving a record volume of LNG at the expense of North Asia. China is expected to stay mostly out of LNG spot markets this winter, analysts say. Weakening gas demand, rising domestic gas production, policies to support coal as an “energy security” tool and of course, much higher spot LNG prices this year have combined to reduce Chinese LNG purchases so far in 2022 .Chinese LNG imports poised for biggest annual plunge ever, according to Wood Mackenzie. The consultancy expects China’s LNG imports to fall by an unprecedented 14% this year – the biggest annual drop since China first imported LNG in 2006. Li Wei, head of gas markets at state energy giant PetroChina, told Reuters on Thursday, “Our winter supply policy is stabilizing gas imports from Central Asia, boosting volumes from Russia and increasing domestic production ». Despite relatively comfortable inventory levels in China, Japan and South Korea, calls to curb energy use have continued in recent weeks. Japan, for example, is calling on people and businesses to resume energy conservation efforts from summer this winter as water shortages and LNG price inflation continue to weigh heavily. South Korea, for its part, keeps temperatures in government buildings below 17 degrees Celsius (62.6 F) and dims indoor and outdoor lighting from October to March to reduce power consumption. By Tsvetana Paraskova for Oilprice.com More top reads from Oilprice.com:
