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【METI Mobile】Navigating upheaval in the LNG market

image:Regional Companies

Liquefied natural gas (LNG) accounts for 40% of Japan’s electric power generation. Currently, LNG is shipped to Japan in spherical tanks carried on-board tankers mainly from the Middle East. However, the international LNG market is currently undergoing profound changes.

Power balance between buyers and sellers
Change is being triggered by the shale gas revolution in the United States. Technological innovation has made it economically feasible to excavate natural gas from 2,000-meter-deep shale deposits, an undertaking that made little business sense in the past. The first shipments of shale-sourced LNG will arrive in Japan from the US in 2016. New shale-gas projects are also set for launch in Australia, Russia, Canada, and East Africa. Sellers will compete with one another to win business from major consumers in Japan and other Asian countries.
LNG Producer-Consumer Conference in Tokyo
In September, the fourth LNG Producer-Consumer Conference in Tokyo attracted more than 1,000 delegates from 50 countries across Europe, the Middle East, Africa, and Asia. Hosted by METI and the Asia Pacific Energy Research Centre (APERC), the conference brought together top government officials, business people and industry analysts for a series of highly constructive discussions on how to develop a stable, well-functioning LNG market.
Next stop?G7 in Japan’s Kitakyushu City
Discussions focused on emerging trends such as the recent increase in spot cargo transactions over the traditional long-term LNG contracts, the relaxation of destination restrictions, and pricing diversification. These discussions are part of a global dialogue aimed at creating a stable LPG market which benefits both producing and consuming nations. Moving forward, these discussions are set to continue in May at the G7 Energy Ministerial Meeting hosted by Japan in Kitakyushu City, an emerging hub for renewable energy.
Last updated: 2015-12-11
Ministry of Economy, Trade and Industry
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