• 3 minutes 2nd Annual Great Oil Price Prediction Challenge of 2019
  • 6 minutes "Leaked" request by some Democrats that they were asking Nancy to coordinate censure instead of impeachment.
  • 11 minutes Trump's China Strategy: Death By a Thousand Paper Cuts
  • 14 minutes Democrats through impeachment process helped Trump go out of China deal conundrum. Now Trump can safely postpone deal till after November 2020 elections
  • 2 hours Shale Oil Fiasco
  • 2 hours Everything you think you know about economics is WRONG!
  • 2 hours Wallstreet's "acid test" for Democrat Presidential candidate to receive their financial support . . . Support "Carried Interest"
  • 12 hours Global Debt Worries. How Will This End?
  • 13 hours USA v China. Which is 'best'?
  • 1 day My interview on PDVSA Petrocaribe and corruption
  • 12 hours Judiciary impeachment: Congressman says Sean Misko, Abigail Grace and unnamed 3rd (Ciaramella) need to testify.
  • 20 hours Quotes from the Widowmaker
  • 2 days Petroleum Industry Domain Names
  • 19 hours Tesla Launches Faster Third Generation Supercharger
  • 12 hours Winter Storms Hitting Continental US
  • 12 hours Joe Biden, his son Hunter Biden, Ukraine Oil & Gas exploration company Burisma, and 2020 U.S. election shenanigans
Alt Text

Global LNG Markets Are Circling The Drain

Asian and European LNG prices…

Alt Text

Gas Prices Languish As Storage Falls To Near-Record Lows

Natural gas inventories are remarkably…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Premium Content

Major Energy Importer Bets $10 Billion On Natural Gas

Much of the attention in energy markets has been focused on OPEC and oil prices lately. But news this week suggests that a different energy commodity is quietly becoming the hottest story going worldwide.

That’s natural gas. With the world’s top importing nation — Japan — saying this week it’s about to embark on a major spending spree in the sector.

Japanese press reported over the weekend that government agencies are about to launch a major funding program for international natgas projects — specifically aimed at the liquefied natural gas (LNG) sector. With the government planning to make a full $10 billion available for investment.

Those dollars will reportedly come from Japan Bank for International Cooperation and Nippon Export and Investment Insurance. With targets being LNG receiving terminals as well as associated power plant facilities. 

Here’s the most intriguing part: Japanese papers said the program will be aimed entirely at LNG projects in Asia. With the stated goal to “build markets in Asia for U.S. LNG”. 

At first glance, it seems odd the Japanese government would be spending its own money to help America gain LNG market share. But there may be a more-selfish reason here: namely, to facilitate increased shipments of U.S. LNG into the Asian sphere, making it easier and cheaper for Japanese buyers to grab a piece of the growing supply.

It will be interesting to see how specific deals are structured in regards to this funding. But it’s likely that Japanese backers will look to take direct stakes in facilities they support — in order to have direct control of LNG flows around Asia. Related: Canada Aims To Solve U.S. Nuclear Woes

The move comes at a critical time for Asian natural gas markets. With China’s CNPC this week announcing it has commissioned a third pipeline bringing LNG-sourced natgas into Shanghai — showing that competition for natgas supply is growing throughout this critical consuming region.

Watch for an official announcement on the Japanese investment program, said to be coming Wednesday. And for specific project details to follow, which should shed light on Japan’s master plan for Asia supply.

Here’s to building it so they can come.

By Dave Forest

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage



Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play