Major Energy Importer Bets $10 Billion On Natural Gas
By Dave Forest - Oct 17, 2017, 11:00 AM CDT
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.
James the exporting of natural gas to Europe and Asia has started a flurry of drilling in the East Texas area. The Cotton Valley Sand and Haynesville Shale are the 2 formations targeted. I agree with your decision not to sell.
Clint Liles