Energy market turmoil in the world’s biggest consumer is underscoring the chaos a bitterly cold winter is causing across North Asia, as liquefied natural gas and Japan power prices, along with South Korean electricity demand, all hit records. Temperatures in Beijing fell to -19.6 degrees Celsius earlier this week, the lowest since 1966, according to the Chinese Meteorological Administration.
Chinese thermal coal for May pared weekly gains on Jan 8, slipping 0.4% to 704.4 yuan ($144.11) a ton on the Zhengzhou Commodity Exchange. The contract gained 4.5% over the week.
Domestic LNG prices in Tangshan, east of Beijing, have more than doubled since late November to 8,600 yuan per ton, according to consultancy JLC. It’s the highest level since February 2018, when a government push to reduce coal use caused widespread gas shortages.
Frigid weather has caused transportation disruptions, with LNG tankers being delayed in Qingdao because of high winds, according to a report from a government-run news portal.
South Korea’s electricity demand reached a record 90 gigawatts because of the chill, the Ministry of Trade, Industry and Energy said in a Jan 7 report on its website. Most of the western part of the country was under a cold wave warning as of the afternoon of Jan 8.
