Marketing

Japanese Market

With project development costs amounting in billions of dollars, it is essential that a long-term committed purchaser is secured to make the project financially feasible. 　The key to marketing LNG to secure such purchasers is the accurate knowledge of projected demand for electric power and gas utilities, as well as industrial energy needs. 　We, LNG Japan, have been conducting marketing activities to meet market demands since the 1970's, and today, we handle approximately 20% of all LNG imported into Japan.

The common trading terms for LNG began as Destination Ex-Ship (DES) contracts, and but are now shifting to FOB contracts. Our first LNG transportation business started back in 1983. Leveraging our experience and proven results in joint-venture projects such as the medium city gas company project where smaller sized LNG tankers (in which we had an early involvement) are utilized, we are able to understand the market environment, and apply this knowledge to pursue marketing activities tailored to each customer's needs and market demands.

Asian Market

LNG trade has developed over the years in the Far East, which was primarily kicked off by the Japanese market followed by the Korean and the Taiwanese market. More recently, India and China have started importing LNG, and Thailand, Singapore, and Pakistan are currently constructing LNG receiving terminals. Several other Asian countries like Indonesia, Vietnam, and Bangladesh are also planning to import LNG in the near future. 　We, LNG Japan, are continuously focusing to establish and to develop long-term business relationships with Asian LNG buyers for future business opportunities by utilizing our LNG trading expertise in the Japanese market.

European Market

In European market, natural gas is produced in North Sea, Algeria, Russian, and so forth and traded through pipelines. However as the United Kingdom has turned from net exporter to net importer of natural gas since 2005 due to decreasing production of North Sea gas fields, each European country has begun procuring LNG to diversify its natural gas supply. LNG is expected to contribute to stable gas supply in that LNG can be secured from various countries. We, LNG Japan, are seeking for business opportunities in cooperation with other European entities, aiming for LNG supply to Spain, the largest European importer, as well as France, the United Kingdom, and so forth.

North American Market

Natural gas pipeline trade is an established market in the U.S., where approximately thirty times as much natural gas is consumed compared to Japan. 　However, due to recent increase in natural gas demand and decline in natural gas production in North America, LNG has attracted significant attention in the U.S. energy market and its players. 　As a result, a number of LNG receivings terminals have been planed.

We, LNG Japan, are taking on new challenges to supply LNG to North America which is one of the world’s largest LNG markets and to create a consistent business model from the upstream business to the downstream business. 　This covers procurement of LNG supply source, participation in LNG receiving terminal and sales of regasified natural gas to the U.S. downstream market. We have already entered the downstream business in the U.S. market by selling pipeline natural gas to our customers through our affiliated company.