LPG DEMAND TO WEAKEN FURTHER IN JAPAN

摘要

According to the lagged data for April, Japan imported one million tonnes of LPG, 14% less than in March. The end of the winter heating demand season was the prime reason for lower LPG imports. Nevertheless, LPG demand in Japan has been tapering off and is estimated to have declined by 3% to 14.3 million tonnes for the financial year 2016-17. The major reason for the fall in demand is the growing city-gas networks in the country, which makes the gas easily available to both household and industrial sectors. The higher cost of LPG vis-à-vis LNG is also keeping the former at a disadvantage. The government-affiliated Institute of Energy Economics expects Japan’s LPG consumption to continue to fall for the next two years, mainly because of the increased competition from rival city gas.