Japan Eyes U.S. Supplies of Natural Gas

By Peter Landers

We already know what Japan?s abrupt abandonment of nuclear power means at home:? a long, hot summer of power conservation. But what does it mean abroad?

Rebecca Smith and Mari Iwata report that U.S. companies see opportunity in feeding what is likely a long-term rise in Japanese demand for natural gas.

Mitsubishi Corp., Mitsui & Co., Sumitomo Corp. and Tokyo Gas Co. are among the Japanese trading companies and utilities doing deals in the U.S. There?s one catch, though: The U.S. hasn?t decided yet whether to allow exports to countries like Japan that lack a free-trade agreement with Washington.

A decision on that point could come after the November U.S. elections. If it?s favorable to Japan, that leaves plenty of time, because the export plants will require years of construction and billions of dollars to complete. There?s no gas pipeline from North America to Japan, so the gas has to be supercooled and liquefied for shipping across the Pacific.

The U.S. isn?t the only country looking to sell more liquefied natural gas to Japan. As many as three LNG plants are planned for the small Canadian city of Kitimat in northern British Columbia. Mari Iwata has more in this?article on one Canadian project with Japanese investment.

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