ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print
Commodities

Japan faces hidden costs from US natural gas imports

Utilities must blend fuel to raise heat content to local standards

Japan is stepping up imports of U.S. liquefied natural gas. American shale-based gas is posing problems for the country's piping infrastructure due to its low heat value when burned. (Photo by Ryosuke Hanafusa)
Japan is stepping up imports of U.S. liquefied natural gas. American shale-based gas is posing problems for the country's piping infrastructure due to its low heat value when burned. (Photo by Ryosuke Hanafusa)

TOKYO -- With the blessing of U.S. President Donald Trump, American liquefied natural gas has reached the shores of Japan, promising to diversify the Asian nation's energy supply and cutting down the trade surplus it has with the U.S. while doing so. But the gas is coming with some unexpected costs due to combustion differences with imports from other regions.

In May, Tokyo Gas became the first company to import shale-based LNG from the U.S. under a long-term contract. Other gas and power companies also plan to follow suit. In the future, about 10% of Japan's LNG supply is expected to come from the U.S.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more