Asia: Japan's nuclear crisis set to shrink global LNG spot market

Chemical News: Asia: Japan's nuclear crisis set to shrink global LNG spot market

https://www.chemnet.com Mar 18,2011 Platts
The nuclear crisis in Japan could slow the development of spot LNG trading as buyers fearing increased competition for gas look to lock-in supplies through long-term deals, according to analysts.

But the potential for increased future LNG demand could help speed up project sanctions for new liquefaction developments around the world, they said.

Japan's nuclear outages have created a 9.7 GW gap in power supply, with much of that power output expected to be lost for a significant period of time, possibly years, and requiring replacement from gas, coal or oil.

Buyers needing large new volumes of gas in a tighter market could turn back to long-term contracts to secure supplies.
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