Will the Russia-China Gas Deal Give Japan Energy Security? (Reuters)
The China-Russia agreement unlocks new gas supplies and could bring down gas prices across Asia, a development that would pay the biggest dividends for Japan, the world’s top buyer of liquefied natural gas, and possibly other big Asian gas buyers such as South Korea and Taiwan according to a lengthy Reuters analysis (Huge Russia-China gas deal still leaves door open to Japan).
A source at one of the biggest Japanese buyers of gas shipped in liquid form has told Reuters said that the new Russian gas should absorb some Chinese pressure on LNG demand in Asia, but others are more cautious with Gavin Thompson, the head of Asia-Pacific gas and power at consultancy Wood Mackenzie, saying: “The Russian gas will be coming into the northeast of China, into a market that was never going to be served by LNG in the first place.”
Japan buys about a third of global LNG shipments and spent a record 7.06 trillion yen ($70 billion) last year – mostly for electricity generation to replace idled nuclear reactors following the Fukushima disaster in 2011. Japan’s utilities pay the world’s highest prices.
In addition, imports of Russian LNG into Japan rose 3.1% last year to 8.57 million tonnes, or 9.8% of total imports. The Russia-Chinese deal has also revived talk of a pipeline from Russia to Japan and it could “also spur further development of gas fields in Siberia that could be a source of LNG for Japan” according to Takashi Hayasaki, the general manager of the Japan Petroleum Development Association.
To read the whole article, Huge Russia-China gas deal still leaves door open to Japan, go to the website of Reuters. In addition, check out: The BIG Loser in the Russia-China Gas Deal? Australia (SMH)
- The BIG Loser in the Russia-China Gas Deal? Australia (SMH)
- The Coming Eurasian Century: Russia and China are De-Dollarizing. Is “Pipelineistan” Coming?
- Emerging Markets vs Japan: Which Offers the Most Value? (Citywire)
- There Are Massive, Record Breaking “Mystery Buyers” In Gold All Of A Sudden (QTR Finance Substack)
- The Surprising Secrets of Growth in Emerging Markets (City Wire: The Funds Fanatic Show)
- Russia and China to Build a Rail Bridge Across the Amur River (PR)
- Microsoft’s Emerging Market Problems: Piracy & Naked PCs (Reuters)
- No Improvement in Asia Pacific Corporate Payments in 2015 (Coface)
- EU Slowly Weening Off Russian Crude Gives Moscow Time To Divert Flows To Asia (Zero Hedge)
- Asia at a Crossroads: Demographics, Economics & Investment (State Street)
- Looking Past the Hang-Ups for Asia’s Smartphone Industry (Franklin Templeton)
- Russia Pivoted East to Asia 800 Years Before Obama (MT)
- Russia Continues to Look East to Asia (CNBC)
- Despite Centuries of Dire Predictions, Why Russia Isn’t Going Away (NI)
- Bulgaria Goes Nuclear on Russia with a $5B Deal with Westinghouse (MT)
Leave a Reply