US May Allow Shale Gas Exports to Japan

The United States is close to approving shale gas exports to Japan, the Japan Daily Press said citing sources in Washington.

It is expected that America’s Energy Department will give conditional approval for the time being, and then it will proceed to examine Japanese companies and their shale gas export projects, the report said. The approval is expected to come as early as this April.

This development would be much welcomed by Japan as LNG imports have been rising after the suspension of all nuclear reactors. Last year, Japan has been recorded as the number one LNG importer in the world, with a record 87.3 million tons imported, the Japan Daily Press said.

In the U.S., LNG prices have been falling because of a sharp increase in shale gas output. Almost 20 applications for shale gas export projects—some of whom are Japanese utility firms—have been filed with the U.S. government.