Natural gas market and its pricing in japan,korea

1. NATURAL GAS MARKET AND ITS
PRICING IN JAPAN,KOREA & TAIWAN
RUHILIN NASSER. NURSUHAILE AHMAD. ZULFIQAR ROSNAN

2. NATURAL GAS MARKET OVERVIEW

3. Overview
• Japan is the world's largest liquefied natural gas (LNG)
importer
• Second-largest importer of coal behind China.
• Third-largest net importer of crude oil and oil products in the
world behind the United States and China.
• Japan has limited domestic energy resources that have met
less than 9% of the country's total primary energy use since
2012.

4. Gas Demand

5. Gas Import Dependency
• Japanese gas demand is mainly
supplied by imports in the form of
LNG.
• Natural gas supply sources to the
country are widely diversified.
• In 2012, Australia was the largest
supplier, representing 20% of total
imports. Qatar (17%), Malaysia (16%),
Russia (10%) and Brunei (7%) are
other key gas supply sources for
Japan.

6. Gas Supply Infrastructure - Pipelines
• Japan has no cross-border gas pipelines. Total gas pipeline length
accounts for 249 786 km through the country.
• Around 86% of gas pipelines are low-pressure grids for local
distribution, while only 14% are for high pressure (4 772 km).
• Although there are around 43 main interconnection points between
areas, the trunk line networks are not necessarily connected to each
other as they have developed separately around LNG terminals.
• There is no single operator of the national transmission system in the
country, as the trunk line networks are not necessarily connected each
other. Each industry (mainly electricity utilities and city gas
companies) owns and operates its gas pipelines.

8. NATURAL GAS PRICING
JAPAN

9. NG pricing
• The import price for Japan remained in a $ 15-16 /MMBtu range in 2014, though the
prices declining
• LNG import value increased further due to the weakening yen
• The import price in 2016 is forecast to fall to around $ 10/MMBtu due to crude oil
price drops.

10. Majority sales conduct by major company
• There is about 209 gas-based
companies across Japan.
• 70% of all domestics gas are
conducted by this 4 major
companies :
• Osaka gas
• Tokyo gas
• Toho gas
• Saibu gas

11. Natural Gas Market Overview

12. Overview
South Korea was the world's 9th largest energy
consumer in 2014,
the 5th largest importer of crude oil,
the 3rd largest importer of coal,
the 2nd largest importer of liquefied natural gas
(LNG) after Japan

13. Total Primary Energy Consumption
has no international oil or natural gas
pipelines
relies exclusively on tanker shipments of
LNG and crude oil
petroleum and other liquids, accounted 39%
 trend is attributed to the steady increase in
natural gas, coal, and nuclear energy
consumption which has reduced oil use in
the power sector and the industrial sector

14. Natural Gas Consumption
consumed an estimated 1.7 trillion
cubic feet (Tcf)
Power generators used more coal
and nuclear power starting in 2014
as nuclear facilities returned to
service following a shutdown
because of safety problems and as
coal prices dropped

15. Sector Organization
• Korea Gas Corporation (KOGAS) dominates South Korea’s wholesale
natural gas sector, and the company is the largest single LNG importer
in the world.
• n the upstream sector, KOGAS has focused primarily on overseas LNG
liquefaction projects, while the KNOC has handled most exploration
and production-related activities.

16. Liquefied Natural Gas
imported 1.8 Tcf of LNG, which
was 15% of the global LNG trade
Almost two-thirds of 2014 LNG
imports came from Qatar,
Indonesia, Malaysia, and Oman
Indonesia was South Korea’s
first source of LNG

17. Application of LNG
was first imported as an alternative energy source for power
generation in 1986.
decided to supply natural gas to the general public to meet the growing
needs of clean energy.
In 2010. the share of gas used in the power generation will shrink to
about 38.6 %, while the share of city gas will grow up to 61.4 % of the
total gas demand.
mostly used for heating and cooking

18. Natural Gas Pricing
Korea

19. LNG Prices
South Korea's LNG import prices averaged $678.52/mt ($13.05/MMBtu) in March 2015

21. Natural Gas Market in Taiwan
• Taiwan was the world’s fifth largest importer of LNG, with imports sourced mainly
from Indonesia and Malaysia under long term (20 year) contract.
• The state owned Chinese Petroleum Corporation (CPC) currently controls all aspects
of natural gas supply in Taiwan, including exploration, production, imports and
wholesale sales.

22. Natural Gas Market in Taiwan

23. Natural Gas Market in Taiwan

24. Natural Gas Market in Taiwan

25. Natural Gas Market in Taiwan

26. Natural Gas Market in Taiwan

27. Natural Gas Market in Taiwan

28. LNG PRICING
TAIWAN