A sudden drop in daily minimum temperatures in Japan and South Korea has raised expectations of stronger gas-fired heating demand, but ample inventories are creating resistance to further cargo procurement, Platts said.
- A more intense cold wave may be needed to boost LNG inflows, market sources said.
- Overnight temperatures in Seoul and Tokyo are forecast fell to zero degrees and should be at the 30-year average Dec. 7-20. This compares to well above average in recent weeks.
- Colder weather in South Korea is unlikely to boost LNG demand immediately because of the current nuclear-focused power policy. Electricity from cheaper coal and nuclear is traded first.
- LNG demand for electricity is seen flat during the off-peak autumn, before rising in peak winter season from December.
- Temperatures in parts of Japan rose Nov. 21, which may prevent a build up of any spot LNG demand.