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Page added on May 19, 2013
U.S. OKs liquefied natural gas exports to Japan, others
The United States said Friday it will allow exports of domestically produced liquefied natural gas to Japan and other countries to which it is not bound by free trade agreements, authorizing a plan to deliver shale and other gases from Texas.
Japan hailed the move as it had been asking the United States to lift a ban on LNG exports to meet its energy needs after most of its nuclear reactors were suspended following the 2011 Fukushima nuclear disaster as well as rising prices of energy imports.
The U.S. Energy Department authorized two companies under Texas-based Freeport LNG Development L.P. to export LNG to countries that are not U.S. free trade partners, affecting a project involving the Freeport group and major Japanese utilities Chubu Electric Power Co. and Osaka Gas Co.
The announcement will pave the way for the producer of low-cost LNG to export it to Japan as early as 2017, according to a project plan.
Other Japanese corporations such as major trading houses Mitsubishi Corp. and Mitsui & Co. are also involved in shale gas development projects in the United States.
The department said in a statement that the Freeport terminal in Texas is authorized to export up to a prescribed daily limit for a period of 20 years. A total of 4.4 million tons a year of LNG will be shipped to Chubu Electric and Osaka Gas.
The decision came amid concerns in the United States that an increase in LNG exports to countries that have not signed free trade agreements with it could push up domestic gas prices.
The department said it will authorize exports to non-FTA partner countries unless it finds the proposed exports will not be consistent with the national interest of the United States.
In Tokyo on Saturday, Economy, Trade and Industry Minister Toshimitsu Motegi, who recently visited the United States to call for an early approval of the exports, said, “I welcome from the bottom of my heart the U.S. approval of LNG exports.”
As there are two other projects planned in the U.S. mainland that involve Japanese companies, Motegi added that he expects them to also get the green light from Washington at an early date.
11 Comments on "U.S. OKs liquefied natural gas exports to Japan, others"
BillT on Sun, 19th May 2013 2:30 pm
Fools…
shortonoil on Sun, 19th May 2013 4:06 pm
What do you expect when organizations like the much vaulted IEA is now being directed by an ex – 1’st grade school teacher. It is doubtful as to whether there are 10 people in the DOE who could tell the difference between a straight line and a logistic function. These decision are made by politicians, and the decision made is directly proportional to the size of the contribution received.
“Fools” may be the understatement of the century!
Kenz300 on Sun, 19th May 2013 6:17 pm
Quote — ” Renewables are becoming too competitive for fossil fuels.
Forbes has quoted Rick Needham, director of energy and sustainability at Google saying, “While fossil-based prices are on a cost curve that goes up, renewable prices are on this march downward.” That pretty much sums it up. In just the last five years, solar photovoltaic module prices have fallen 80 percent and wind turbines have become 29 percent less expensive. Moreover, after the initial investment, renewables such as wind and solar, having no cost of fuel, will prove far too competitive for fossil fuels no matter how cheap those may appear to be. Cheap fuel is still more than free fuel.”
———————-
STORY: The Economic Case for Divesting from Fossil Fuels
http://www.renewableenergyworld.com/rea/news/article/2013/05/the-economic-case-for-divesting-from-fossil-fuels?page=2
J-Gav on Sun, 19th May 2013 8:07 pm
Well, that’s the Japanese pay-off for playing the money-printing game along with the U.S., isn’t it? Doesn’t make any sense, but when you’re just kicking the can down the road, who cares?
Norm on Sun, 19th May 2013 8:46 pm
Awesome. poison the well-water of some heartland farmer, so that a corporation can increase its profits exporting the ill-gotten gains to foreigners.
Plantagenet on Sun, 19th May 2013 11:34 pm
The US was ALREADY exporting gas to Japan—they just did it by sending it to Canada (which was legal) and allowing the Canadians to ship it overseas from their terminal in British Columbia.
This new arrangement just legalizes the pre-existing reality.
Antaris on Mon, 20th May 2013 12:49 am
I live in BC and we don’t have any LNG terminals. Plant where did you get that from?
BillT on Mon, 20th May 2013 1:27 am
Antaris, Plant makes things up as he goes, I think. But he has company. SOS and Econ101 are also great at twisting the truth. Maybe they work for the government?
bobinget on Mon, 20th May 2013 3:02 am
Here we go again. At least this is metaphorically
shipping jobs overseas. At the end of the day it’s the same. I give up. Notice how DC always makes BS like this public on a Friday.
James on Mon, 20th May 2013 4:01 am
5, 10, 15 years from now we will be needing that gas, and when we do it will be 3 times the price we have now.
rollin on Mon, 20th May 2013 12:01 pm
I guess we still want transistor radios and japanese cars. Gotta stifle any industrial growth here in the US.