17th INTERNATIONAL CONFERENCE & EXHIBITION ON

17th INTERNATIONAL CONFERENCE & EXHIBITION

LIQUEFIED NATURAL GAS (LNG 17)
ON LIQUEFIED NATURAL GAS (LNG 17)

Role of LNG in Growing Asian Gas Market

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Shigeru Muraki
Executive Vice President
Tokyo Gas Co., Ltd.
April 17th, 2013

Asian Natural
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17th INTERNATIONAL CONFERENCE & EXHIBITION
DiversificationON
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Russia
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Term, Spot,
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17th INTERNATIONAL
& EXHIBITION
LNG Demand
and SupplyCONFERENCE
Perspective
in Asia
ON LIQUEFIED NATURAL GAS (LNG 17)

(MTPA)

600
500
400

Supply (Branded LNG)

Supply (Pre-FID)
Supply (existing, SPA/HOA concluded)
Demand (High Case)
Demand (Low Case)

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300

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200
100
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2010

2015

2020

2025

2030

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Diversification of Supply Sources

New potential sources: Shale gas, CBM, Methane hydrate
Safety of Nuclear Power Plant, Management of Nuclear Waste
Utilization of High-efficient Gas Power Generation

Wider use of Renewable Energies

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Development of Infrastructures
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Liberalization of Energy Market
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Power Market Reform; Full liberalization 2016
Unbundling of power utilities 2020
Wider use of Distributed Energy System utilizing CHP
Promotion of Demand Side Management
Demand response, Energy conservation
Promotion of Smart Community
4

Perspectivethin Japan

17 INTERNATIONAL CONFERENCE & EXHIBITION

ON LIQUEFIED NATURAL GAS (LNG 17)

LNG Demand Profile through 2030

Increased use of Natural Gas in Power Generation

Conversion from Oil to Natural Gas in Industrial Sector
Decrease of Nuclear Power and Increase of Renewables

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60-70 MTPA; under the current conditions
increase of coal in power generation
limited conversion to natural gas

INTERNATIONAL
& EXHIBITION
Potential 17
ofth U.S.
LNG toCONFERENCE
Asia
ON LIQUEFIED NATURAL GAS (LNG 17)

TOKYO GAS Activities

Freeport
Export Capacity ; 12MTPA

Cordova Shale Basin

Osaka Gas 2.2MTPA)

Chubu Electric (2.2MTPA)

Sabine Pass
Export Capacity ; 15MTPA
KOGAS (3.5MTPA)
GAIL (3.5MTPA)
BG 5.5MTPA portfolio to Asia)

Cameron
Export Capacity ; 8MTPA
Mitsubishi (4MTPA)
Mitsui (4MTPA)

Barnett Shale Basin

Cove Point
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with Cove Point LNG
Tokyo Gas, Kansai Electric
and Sumitomo (2.3MTPA)
Gail (2.3MPTA)

More than 25 MTPA to Asia

6

th INTERNATIONAL
Three key 17
Factors
for theCONFERENCE
Golden Age
of
& EXHIBITION
LIQUEFIED
NATURAL GAS (LNG 17)
Asian Natural ON
Gas
Market

. High

Supply Potential with Diversification

New Sources;
U.S Shale, Canada, Alaska(North Slope), Mozambique,
Russia (LNG & Pipeline: Siberia to China and Korea,Sakhalin to Japan

Regional Sources;

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Unconventional gas in China, Pipeline from Central Asia
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. Enhanced Competitiveness among fuel mix

Global pricing; Henry-hub, NBP, Combination of Indexes

Stable pricing; Oil-indexed gentle slope, S-curve
Flexibility; Term, Spot, Free destination, LNG trading hub

th INTERNATIONAL
Three key 17
Factors
for theCONFERENCE
Golden Age
of
& EXHIBITION
LIQUEFIED
NATURAL GAS (LNG 17)
Asian Natural ON
Gas
Market

Smart Use
Highly efficient power generations ;
MACCGT (Most Advanced Combined Cycle Gas Turbine) ,
CHP (Combined Heat and Power) , Fuel Cell
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High efficient and compact burners

Smart Energy Network in Smart Communit;

Smart use of heat & power in distributed energy system with
CHPs and renewables

th INTERNATIONAL
Three key17Factors
for the
Golden Age
of
CONFERENCE
& EXHIBITION
LIQUEFIED
NATURAL GAS (LNG 17)
Asian NaturalON
Gas
Market

Factors altering the market context

Volume and timing of LNG export from US and East Africa
Emergence of pipeline supplies from Russia

Emergence of unconventional
gas production in China
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Geopolitics in Middle
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and Northeast
Asia
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Economy

Market liberalization
Global warming