US - SHALE GAS - JAPANESE and CHINESE MARKETS

Why Japan Will Drive Global LNG Growth There is little reason to expect Japan’s reactors will offset its voracious new appetite for LNG. By Clint Richards August 08, 2014 ... A look at Japan’s LNG consumption since 2011 ... Japanese use of LNG has increased by almost 20 million metric tons, or about 8 percent of global demand in 2013. The Wall Street Journal writes that this increased demand has led to more than 50 LNG export terminal proposals worldwide. However, despite surging demand for LNG in Japan (and China) recently, there are reasons to temper expectations. The Wall Street Journal speculates that a possible Japanese return to nuclear power and China’s staggeringly large new deal with Russia to import regular, piped natural gas should cause LNG speculators to hedge their bets somewhat.  [Yeah, hedge those bets in Europe.] While the question of China’s future LNG consumption may not be clear, demand will surely rise over the short to medium-term, even if that growth ends up being less pronounced than the increase in natural gas demand. Even with the prospect of a slowdown in China’s economy, it is simply too large not to diversify and increase the weighting of LNG in its energy mix, especially as the environmental impact of coal becomes much more problematic in its mega-cities. Japan’s future demand for LNG may also be difficult to gauge, but there are indicators as to what direction the industry in Japan will take. First of all, there are the $10 billion in loans put together by major private banks like Sumitomo Mitsui Banking and Mizuho Bank, along with the government’s Japan Bank for International Cooperation, to fund LNG projects in North America slated for delivery between 2017 and 2018. Additionally, by 2020 Japan is expected to order roughly 90 LNG ships worth $19.3 billion. However, the location of the investments is important, as that will signal the long-term viability of LNG imports for Japan. Overall Japanese investment in North America has increased substantially since 2011, going from roughly $15 billion to more than $45 billion in 2013. A significant portion of that investment is being funneled into the emerging shale natural gas industry in both the U.S. and Mexico. Once U.S. shale gas is online, it is expected to be 20 to 30 percent cheaper than Japan’s other suppliers. EXTRACT ONLY - FULL @ SOURCE http://thediplomat.com/2014/08/why-japan-will-drive-global-lng-growth/

That's just the Japanese / Chinese market.

* China will be largely natural gas reliant (Russian deal) ... but some diversity expected.

* Japan is a big market ... but they *could* revert to nuclear, so market not assured?

Don't forget Europe needs energy, too.  Hello Europe.