AFR: BHP threat to ship US shale gas to Asia

BHP Billiton is considering shipping a portion of its US shale gas reserves to Asia, a strategy that would reshape the global gas industry and compete with exports from Australia’s huge liquefied natural gas projects in Western Australia, the Northern Territory and Queensland.

The world’s largest resources group said it was “studying closely” opportunities for LNG exports from the US to Asia, spurred by interest from Japanese power utilities seeking shale gas, which sells for about a quarter of the price of LNG imports.

A collapse in US gas prices after BHP’s acquisition of 30 trillion-plus cubic feet of gas resources, plus oil resources, for $US20 billion last year led it to reassess its shale gas strategy, which was aimed at US customers.

“It’s not just us that want to do this,” said Mike Yeager, the chief executive of BHP’s petroleum division. “The Asian companies are calling us every day, wanting us to help them do it. Really, the pull is that strong.” MORE