Asia’s energy supply looks secure — even as Europe scrambles – CNBC

by | Oct 21, 2022 | Energy

As Europe struggles with a power shortage, Asia-Pacific’s power supply remains secure mainly because the region still uses a lot of coal, data has shown.With liquified natural gas supplies in the region redirected to Europe, power generators in Asia not only have less access to LNG but have had to opt out of buying more expensive LNG driven by strong demand in Europe. Europe is struggling with a gas shortage as Russia cuts its supplies, forcing many countries into an energy crisis in the lead up to winter. The U.K.’s National Grid has warned of possible power cuts.On Tuesday, the EU steered away from a proposed price cap on Russian gas as it laid out new measures to tackle high energy prices. Russia had previously said it would halt all fuel supplies to the EU if the bloc imposed these caps, which suppress Russian revenues and price of commodities.S&P Global chief energy strategist Atul Aryal said while the crunch in Europe and the war in Ukraine have forced up prices of fuel such as oil and gas globally, it has not hurt Asia’s energy generation. According to the International Energy Agency’s latest gas report, in the first eight months of the year, Asian spot or short-term LNG imports were down 28% compared to the same time last year. Overall LNG imports fell 7% year-on-year.Bloomberg | Bloomberg | Getty Images”In Asia, instead of using gas, countries are using coal because coal is here, coal is domestic and less expensive,” Arya told CNBC.”The downside is that Asia, which is growing gas consumption, has stopped, at least for now.”Unlike Europe which relies on gas for energy creation, gas is less relevant to Asia. It only forms 11% of its power mix and imported LNG forms a small part of that with most gas coming from domestic production, Woo …

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