Page 5 - AsianOil Week 08 2023

AsianOil COMMENTARY AsianOil

Credit: LNG Canada.

By comparison, Japan posts a dismal figure of exports needed looking at, although he offered
just 12%, which in turn accounts for its ranking a silver lining in that there is now “an increased
near or at the top of many energy import tables. signal of federal and provincial co-operation, as
East Asia, notably Japan, South Korea and well as inter-provincial co-operation, and I think
Taiwan combine to import around 40% of all that’s one of the signals that we’re waiting for.”
LNG shipped internationally, according to the In an effort to nudge the Canadian side into
Institute for Energy Economics and Financial action, meanwhile, Dulles Wang of Wood Mac-
Analysis (IEEFA). kenzie added that both Asian nations were look-
These numbers could come down in the ing to diversify their suppliers.
future if current high LNG prices refuse to Crucially Wang also pointed out that between
budge, with the IEEFA adding that “the high 20 and 25% of the current LNG deals signed by
price LNG environment in 2022 has spurred a Tokyo and Seoul are set to run out in the next
renewed focus on nuclear power in Japan and decade; hinting that “We’re talking about oppor-
South Korea. A gradual restart of Japan’s nuclear tunities – not just in the sense of displacing coal,
fleet and a reversal of anti-nuclear policies in or in terms of the energy transition – but also in
South Korea are likely to significantly reduce just renewing or securing enough to meet cur-
power sector LNG demand.” rent demand.”
The JOGMEC official also referred to the Addressing questions on the role renew-
money making potential for Canada in the form ables are now playing in displacing LNG use,
of Japan and Korea together using around 15bn and speaking on behalf of Korea Gas Corpora-
cubic feet (425mn cubic metres) per day of LNG tion, Won Cho, an energy project developer at
when Canada’s total natural gas production per the firm said LNG provides 27% of the nation’s
day is between 17 and 18 bcf per day. power supply.
In a webinar that had the moderator, Marla “Altogether, it just doesn’t make sense right
Orenstein asking how Japan and Korea see now to focus only on renewables” Cho said,
Canadian LNG potential “given our stalls so taking the conversation back to Canadian LNG
far”. Karl Pires, a current governor of the Cana- by adding: “I’ve been talking to a lot of poten-
dian Chamber of Commerce in Japan said: “I tial buyers who are interested in Canadian LNG
think they view Canada, from a geopolitical specifically, because it’s a low carbon intensity,
perspective and from a security perspective, as it’s bringing a lot of attention and appetite in the
an ideal partner. It would be great if they could market.”
work more with Canada, but I think they’re At present though, eyes in Japan and Korea
very hesitant just because of the experience remain fixed on the rate of construction at the
with LNG…in terms of the pace and the pro- LNG terminal in Kitimat which, if finished on
gress, and the various obstacles they ran into,” time, should be producing LNG by late 2024.
Pires added. Canadian officials have still to decide when,
Mizutani went on to say that Canada’s evi- or if at all, large-scale exports to Asia will fol-
dent regulatory issues that appear to be stalling low. ™

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