JAPAN ENERGY CRISIS: In case you missed it, Japan is suffering its worst energy crisis since the 2011 Fukushima nuclear disaster, with very tight supply of both electricity and natural gas. Domestic wholesale electricity prices have spiked to a record high 1/5

Multiple reasons behind the crisis: a) low nuclear availability, b) low gas stockpiles which limit gas-fired plants d) surging demand due to cold weather and covid (double-heating at home for WFH, and also offices, open windows), d) east-west grid lack of inter-connectivity 2/5

Japanese utilities, for one reason or other, had been wrong-footed by the extra demand, and despite eye-watering electricity prices, some cannot run their gas-fired power plants harder because they simply don’t have enough gas/LNG supply at hand right now to respond 3/5

The wholesale price of electricity in Japan has surged to a record high, many, many, many times above normal levels (chart above). And local utilities, large and small, are now asking customers to conserve energy, despite the blizzard conditions4/5 https://twitter.com/TEPCOPG/status/1348225346508738564?s=20

The crisis is spilling over beyond Japan, as local utilities bid up for LNG supplies (and even ask suppliers to speed up tankers to get them earlier), sending Asian benchmark LNG prices to a record (chart below). There are signs of extra demand for oil too (kerosene / LPG) 5/5

And if you aren't already, follow colleagues @SStapczynski and @a_shiryaevskaya if you want to know everything about Japanese wholesale electricity prices and LNG market