Japan and South Korea prepare for crucial winter

Nuclear availability and the extent of low temperatures will decide how much LNG they will need for the months ahead

Japan and South Korea have been stocking up on LNG as Asia’s second- and third-largest gas markets look to avoid a winter supply crunch. But their respective appetites for additional volumes in coming months will likely be determined by the availability of nuclear power and the degree of cold weather. Jera and Kogas, the biggest importers in Japan and South Korea respectively, along with other major buyers such as Kansai Electric and SK E&S were active in the Asian spot market up until the end of August, in a sign the JKM’s rise to a historically high $60-70/mn Btu did not price Asian importers out of the ultra-expensive market. But relatively robust procurement from Northeast Asian impo