Japan and South Korea promise little immediate LNG market relief

East Asia’s power sector use may be poised to shrink from 2023, but demand for the fuel is expected to remain strong this year

LNG demand in Japan and South Korea—respectively the world’s largest and third-largest importers—will remain robust for the rest of 2022, offering little short-term respite to a global LNG market constricted by current and potentially future reductions in Russian output and other supply niggles. But imports could begin to slide next year, as greater nuclear availability and coal combustion combine to reduce gas’ role in the power mix. Unseasonably hot weather in the two countries this summer has supported peak power demand—including from gas-fired power generation—as households and offices crank up their air conditioning. Japanese LNG imports reached 37.54mn t in the first half of 2022, admi