Sunday, June 9, 2013

Everyone wants cheap U.S. natural gas

Every country wants to have U.S. cheap shale natural gas which is only 30% of Japan's cost (1 million BTU on the following chart is equal to 293度電) because of its advanced fracking technology. Taiwan's natural gas comprises 11.6% of total energy consumption and imported 12.8M MT (million-tonne) natural gas last year. U.S. has already exported 33.5M MT/yr natural gas to Mexico and Canada through pipes. Now US is building facilities to liquefy natural gas to -162C for export purpose. Its total export capacity can reach 27.4M MT/yr in the next few years to Japan, U.K, Spain, Korea and India. Though A.I.T. has expressed willingness to sell Taiwan U.S. natural gas, it is hard for me to imagine Taiwan can get more than 5% of its 27.4M MT/yr.

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