Heatwave fails to fire up Japan's LNG prices
Extensive use of term contracts has protected utilities from the cost of extreme weather but looming nuclear shutdowns could leave them exposed
LNG sellers expecting the second consecutive summer heatwave in Japan to again drive up spot prices have been left disappointed. Abundant global LNG supply and the widespread use of term contracts have contained prices, while drawing on domestic inventories and reopened nuclear plants has cooled the need for imports. But nuclear safety measures—which could force the closure of reopened plants and prevent others being returned to service—point to a potential surge in gas demand next year. A spike in temperature during July and early August—which left more than 57 dead and 18,000 hospitalised—increased the demand for electricity to power air conditioning units. It was severe enough for Tohoku

Also in this section
7 August 2025
The quick, unified and decisive strategy to return all the barrels from the hefty tranche of cuts from the eight producers involved in voluntary curbs signals a shift and sets the tone for the path ahead
7 August 2025
Without US backing, the EU’s newest sanctions package against Russia—though not painless—is unlikely to have a significant impact on the country’s oil and gas revenues or its broader economy
6 August 2025
Diesel market disruptions have propelled crude prices above $100/bl twice in this century, and now oil teeters on the brink of another crude quality crisis
5 August 2025
After failed attempts to find a buyer for its stake in Russia’s largest oil producer, BP may be able to avoid the harsh treatment meted out to ExxonMobil and Shell when they exited—and could even restart operations if geopolitical conditions improve