24 January | Macroeconomics

Freezing weather in Asia could boost gas demand

Extreme weather hit North Asia. The average temperature in China dropped to an unprecedented low, meanwhile Japan is getting ready for blizzards to come.

Temperatures in Mohe in Northern China declined to a record -53°C (-64°F). At the same time, forecasters have nothing to say about warming yet. The Japan Meteorological Agency (JMA) has warned of  a possible heavy snowfall in Northern and Western Japan. 

This weather may prevail in the region until the end of January. This could increase heating demand from major energy importers. For now, the effect is likely to be reduced as plants in China are closed due to Lunar New Year celebrations and Japan can rely on accumulated LNG supplies. 

According to the China Meteorological Administration, cold air in Heilongjiang province will lead to new extraordinary low temperatures on Wednesday.

According to the JMA forecast, snow could fall in many parts of Japan by Tuesday, and temperatures could drop below freezing in major cities such as Tokyo, Nagoya and Fukuoka on Wednesday.

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