LNG WORLD MARKET UPDATE  
August 24, 2016
Japan might take one of three recently restarted nuclear reactors offline which could cause Japan to import more LNG, Korea is expanding their LNG terminal, Canadian LNG projects may risk missing the market window due to legislative slow downs, while various other countries are trying to progress their projects as fast as possible. The weekly news blast is intended to provide relevant industry information to Alaskan stakeholders and inform audiences of the competitive landscape in the global LNG market. Subscription options for this report are available at the bottom of this email. Please contact Leah Levinton at llevinton@agdc.us with questions or suggestions. 
Natural Gas
HH Spot Price
$2.71
August 23 close
 
Weekly Change
$0.04  (1.5%) 
 
Trend
Source: DOR
LNG Import Price
Japan
$6.00
July 2016
 
Monthly Change
$0.00  (0%) 
 
Trend
Source: World Bank
(Interfax; August 18) - Japan's recently restarted nuclear reactor at the Ikata power plant south of Hiroshima may be taken offline due to safety concerns. If recently restarted nuclear plants are taken back offline, the country's LNG demand will need to increase to cover the loss in capacity. Read more
( Hydrocarbons Technology; August 15) - Liquefied natural gas (LNG) importer Korea Gas (Kogas) has signed a memorandum of understanding (MoU) with the Mexican state government of Yucatan to build an LNG import terminal in Merida, Mexico. Once initiated, the $1.5 B project is expected to create a profitable business model for LNG. Read more
(BOE Report; August 17) - Delays in Canadian regulatory and government approvals for major LNG development projects are producing adverse consequences for Canadians. While Canada vacillates, other LNG competitors are making progress by moving forward with multi-billion dollar LNG expansions that are meeting the demand from Asian LNG customers. Read more 
(Reuters; August 22) - Tanzanian's president instructed officials to fast-track long-delayed work on a $30 B onshore LNG export terminal. A final investment decision has been delayed by hold ups in establishing a legal framework and land acquisitions. The joint venture partnership between the BG Group and the state-run Tanzania Petroleum Development Corporation (TPDC) plans to build the LNG plant by early 2020.  Read more