BMI Asia Pacific Oil and Gas Insights: Joining Forces To Push Prices Down

“In this backdrop, gas is set to remain significant as a feedstock for Japan’s power generation in the near future. Moreover, our Power team notes that it is not only nuclear that has lost its dominance in Japan’s power market; while crude oil and fuel oil power generation saw a brief resurgence in the wake of Fukushima in 2011, their share in Japan’s power generation has fallen in 2013 as high oil prices reduce their attraction. Even though Japan paid about US$16.50 per mn British Thermal Units (mnBTU) on average for spot LNG in 2013 according to data from Poten & Partners, it is still slightly cheaper than the average price of the OPEC crude basket in the same year.”