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LNG

Lean gas not a problem for Japan’s utilities

Japan’s imports of LNG sourced from unconventional gas require additional LPG to bring it up to pipeline specifications, but the extra costs are marginal Japan’s imports of LNG sourced from unconventional gas require additional LPG to bring it up to pipeline specifications, but the extra costs are marginal.
By Andrew Walker 21 August 2018 0 32230
An LNG cargo from Australia heading to Japan An LNG cargo from Australia heading to Japan. (Chevron Australia)

Japanese utilities will continue to increase their imports of LNG from the United States despite worries that the low calorific content of the gas makes it relatively expensive compared with LNG from other sources.

Concerns have been raised about the hidden costs associated with increasing the calorific value of US LNG derived from shale gas, as well as volumes sourced from Eastern Australia derived from CBM. However, sources at two of Japan’s biggest utilities said the cost of correcting the low calorific factor was not significant...