Japanese LNG imports among key issues at gas export outlook conference

Delegates are able to engage with speakers to further discuss key issues presented.

Delegates are able to engage with speakers to further discuss key issues presented.

Japan’s LNG imports fell in 2015 to their lowest levels in five years marking an 11.4 per cent decline in volumes. For Australia this meant a 14.8 per cent decline in exports to Japan from last year, but it still remains Japan’s biggest

Speaking about the key factors that will influence LNG demand in Japan, Ryo Minami, director oil and gas at Japan’s Ministry for Economy, Trade & Industry saysAustralia will continue to be one of the most important LNG producers for the country’s energy sector for the foreseeable future.

“Regarding LNG demand in Japan, the key factors will be the debate over Japan’s long-term energy supply-demand outlook (energy mix), restart of nuclear power plants, and further activities to enhance energy conservation. As for sourcing of LNG, competitive pricing and flexibility of purchase contracts including relaxation of destination clauses will be the key factors. We believe that Australia is one of the most important gas producers that has great potential to meet such requirements,” he said.

Mr Minami also said that given the linking of Japan’s LNG import prices to oil prices, previous years had seen import costs rising from ¥3.5 trillion in 2010 to ¥7.8 trillion in 2014.

“Therefore the Japanese economy welcomes global oil price plunge as it will trigger a decrease in Japan’s electricity and gas tariff. On the other hand, when we consider the stable supply in the future, it is
also very important to continue investments in upstream and LNG projects.”

Mr Minami is part of a high level panel of international speakers at the Australian Gas Export Outlook conference to be held in Brisbane from 17-19 November. Other headline speakers include Tatiana Mitrova, Member of the Governmental Commission of the Russian Federation on fuel and energy complex; A K Balyan, CEO and Managing Director for India’s largest LNG importer Petronet LNG; Hamid Siddiqui, President, Prescience Energy Consulting USA; and Shigeki Hirano, Chairman of Osaka Gas Australia.

Joining them will be Australia’s leading gas producers and senior government leaders to assess the impact of the global oil price outlook, gas supply/demand dynamics and geopolitical/climate change drivers on the Australian gas exports. Also attending are international stakeholders whose operations and forward plans will have a huge bearing on Australia’s gas export future.

The three day conference will feature a mix of global supplier and buyer country spotlights, case studies, interactive discussions and workshops that provide a
timely insight into the global gas market landscape and in that context consider the strategies to minimise risk for investment and to insulate the industry from energy market fluctuations.

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