Japan in Race for Asian LNG Hub
Japan, the world’s largest buyer of liquefied natural gas is aiming to establish an international liquefied natural gas (LNG) trading hub by the early 2020s, according to a statement by Japanese Ministry of Economy, Trade and Industry (METI) .
In an attempt to play a role in creating a global LNG market, Japan will open access to receiving terminal and beef up large-scale LNG storage facilities to make active LNG trading possible.
Many Japanese utilities are planning for not only marginal increases in LNG purchases over the next decade but also a growing sphere of LNG activities.
"Japan does not have to be the only hub in Asia. It is probably natural for multiple hubs to coexist, each with its own index," an official said.
Japan remains the world’s leading LNG importer, a position it has held since the inception of the industry over 50 years ago. Cargoes totalling 85.05 million tonnes (mt) were discharged at the country’s terminals in 2015, a volume 250 per cent ahead of the purchases by Korea, the number two LNG import nation.
Although Japanese imports last year were 4.7 per cent down on the 2014 level, the shipments accounted for 35 per cent of the global trade in LNG in 2015. Japan will remain the top buyer for LNG for the foreseeable future.
Meg Gentle, president of marketing at United States LNG exporter Cheniere, said that while she envisaged many hubs emerging in Asia Pacific, she is backing Japan as an obvious location.
"I always encourage the Japanese because [Japan] takes about 80 cargoes of LNG per month so they have the physical liquidity there," Gentle said.
Japan's Tokyo Commodity Exchange in 2014 opened an over-the-counter LNG trading system.
