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Japanese demand for LNG has been slowly industrial complexes. It also wants to scale up
tapering off in the wake of the country’s restart gas-based industries such as petrochemicals.
of nuclear power generation, with nine reac- Investors can access the fund, which has a
tors having been reactivated so far. The Japan 10-year maximum tenor, at interest rates of no
Atomic Energy Commission has called for more more than 5%, until the end of February next
to be brought back online in order to reduce the year. After that point rates will rise to 9%.
country’s carbon emissions and stabilise power Nigeria has some 5.3 trillion cubic metres in
supplies. The situation, coupled with tighter proven gas reserves, according to its own esti-
maritime emission rules, has encouraged Japa- mates, but so far investment in gas production
nese shipping companies to speed up develop- and infrastructure has been weak. The govern-
ment of LNG bunker options. ment wants to capitalise much more on this
Kawasaki Kisen Kaisha (K-Line) named resource, by encouraging consumption in many
Japan’s first LNG bunkering vessel last week areas.
at Kawasaki Heavy Industries’ (KHI) Sakaide Nigeria also hopes that using CNG will be So far, investment
Works. Central LNG Marine Fuel Japan will use a cheaper option than more traditional motor
the vessel, christened Kaguya on September 16, fuels. The government has recently ended sub- in Nigerian gas
to begin supplying LNG to ships in the Chubu sidies for domestic fuel supplies – a move neces-
region before the end of the year, K-Line said sary to spur investment in refining but one that production and
on September 18. Kaguya’s first supply opera- will increase costs for motorists.
tions will involve the NYK-operated pure car Meanwhile in Saudi Arabia, two petrochem- infrastructure has
and truck carrier (PCTC) vessel Sakura Leader, ical firms are considering a merger after sustain- been weak
which is the first large PCTC to be fuelled by ing heavy losses, raising the prospect of further
LNG. consolidation of the kingdom’s downstream
The bunkering vessel will also supply a new industry.
car carrier that K-Line is set to deliver before the Saudi Industrial Investment Group (SIIG)
end of March 2021. said on September 20 that its board of direc-
tors had approved initial talks on a tie-up with
If you’d like to read more about the key events shaping National Petroleum Co. (Petrochem). No agree-
Asia’s oil and gas sector then please click here for ment has been reached and it is yet to be decided
NewsBase’s AsianOil Monitor. what structure the deal might take, SIIG said in a
filing on the Saudi Stock Exchange.
DMEA: Nigerian gas grants Such a transaction would mark the latest in
Nigeria wants to encourage the use of com- a series of mergers and acquisitions in the Saudi
pressed natural gas (CNG) as a vehicle fuel, to petrochemicals industry. Most recently, Saudi
reduce its fuel import bill and bring down costs Aramco closed the purchase of a 70% stake in
for motorists. petrochemicals giant SABIC in June from the
The country’s central bank is offering a state.
NGN250bn ($648mn) stimulus package that
aims to make CNG the “fuel of choice” for trans- If you’d like to read more about the key events shaping
portation, and make LPG the favoured option the downstream sector of Africa and the Middle East,
for domestic cooking, captive power and small then please click here for NewsBase’s DMEA Monitor.

Week 38 23•September•2020 www. NEWSBASE .com P7