Japan’s commercial LPG demand faces up to restrictions
Japan's LPG demand is expected to fall with the government's state of emergency to curb its Covid-19 outbreak and the slowdown in the country's economic activity.
The state of emergency declaration allows authorities in Tokyo and six other prefectures to require commercial consumers of LPG, such as restaurants and hotels, to halt operations. It imposes tougher restriction on residents' movements, largely confining them to their homes from 8 April until 6 May.
Government-affiliated think-tank the Institute of Energy Economics Japan (IEEJ) previously forecast operations at restaurants and hotels to fall by 80pc and by 50pc respectively, if a lockdown was imposed on Japan's main cities.
But household consumption could rise with the increasing number of people staying at home.Use of LPG for cooking could increase by 10pc in case of a lockdown, according to the IEEJ forecast.
LPG supplies face minimal disruptions with essential infrastructure and businesses such as refiners allowed to continue operating. The Japan LP gas association (JPLGA) also expects the government to allow gas suppliers to maintain operations. LPG suppliers have already taken precautionary measures against possible operational disruptions amid the coronavirus outbreak.
The household and commercial sectors account for most of Japan's LPG consumption. They consumed 7.4mn t or 51.5pc of the total 14.3mn t consumption during 2019, according to JPLGA data.
By Nanami Oki
source: Argus Media
Top News
Six last month
Iran Alloy Steel Company intends to purchase 12 tons of ferrotungsten through public tender
Gold loses some luster after Trump’s decisive win
Iron ore price flirts with key $100/t level on firm demand, China stimulus hopes
Hedge funds slash bullish wagers on gold over Trump election win
Resolute Mining says it will pay Mali $160 million in tax dispute
Russia takes aim at US nuclear power by throttling uranium
BHP to spend up to $14 billion on Chilean copper expansion
Aluminum price to average 6% higher in 2024 on strong demand: Fitch
Trump chooses oil fracking boss as energy secretary
Earth AI, Legacy Minerals make first greenfield palladium discovery using artificial intelligence
Mexico’s proposed higher mining royalties could block nearly $7bn in investments
Sierra Leone woos miners to clean energy with $11 billion plan
Alrosa plans production cuts and staff reduction for 2025
Chile’s rare salt flat fish face threat from lithium mining project
Endeavour Silver raises $73m for Pitarrilla project
BHP to spend up to $14 billion on Chilean copper expansion
Chile’s rare salt flat fish faces threat from lithium mining project
British Columbia creates new mining ministry to tackle critical minerals amid doubts over capacity
China’s germanium, gallium ban could cost the US $3.4 billion
Iran Alloy Steel Company intends to purchase 12 tons of ferrotungsten through public tender
Iran Alloy Steel Company intends to purchase 150 tons of Low-Carbon Ferro Manganese through public tender
Earth AI, Legacy Minerals make first greenfield palladium discovery using artificial intelligence
Mexico’s proposed higher mining royalties could block nearly $7bn in investments
Sierra Leone woos miners to clean energy with $11 billion plan
Alrosa plans production cuts and staff reduction for 2025
Chile’s rare salt flat fish face threat from lithium mining project
Endeavour Silver raises $73m for Pitarrilla project
Chile’s rare salt flat fish faces threat from lithium mining project