Dirty-Oil Hoarding for Winter Begins in Asia as Gas Woes Deepen

  • Japan’s imports of highly pollutive fuel oil at four-year high
  • Security of electricity supply prioritized over environment

An oil tanker outside a Sime Darby Oils Trading Sdn. facility in Northport, Malaysia.

Photographer: Samsul Said/Bloomberg
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Asia is stocking up on dirty fuel oil for winter power generation earlier than usual as a gas shortage sees environmental concerns take a back seat to making sure the lights remain on.

Japanese imports of the fuel, which can be used instead of natural gas to produce electricity, surged to a four-year high in AugustBloomberg Terminal, and are set to stay high in the coming months, according to Vortexa Ltd. Taiwanese and Bangladeshi purchases last month were more than double a year earlier, the energy intelligence firm said.