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    The Australian: Japan ups ante on gas push

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Summary

Japan has ratcheted up its attack on high Australian LNG prices -- hailing US shale gas exports as a game changer that could slash prices by up to 30 per cent -- and is inviting industry players to Tokyo next month as it looks to break the traditional LNG pricing model and encourage new supply.

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Asia/Oceania

The Australian: Japan ups ante on gas push

Japan has ratcheted up its attack on high Australian LNG prices -- hailing US shale gas exports as a game changer that could slash prices by up to 30 per cent -- and is inviting industry players to Tokyo next month as it looks to break the traditional LNG pricing model and encourage new supply.

An official from the industry ministry said yesterday buying US shale gas was like purchasing from a "supermarket" at true market prices. He said shale gas exports coupled with a coming "boom" in supply had the potential to turn LNG pricing in Asia on its head.

The official, Shinichi Kihara, added that suppliers would gather in Tokyo in a little over two weeks as Japan searched for new sources of supply and ways to push for cheaper prices.

Mr Kihara said that when a similar LNG forum was held for the first time last year the outcome had been "epoch-making" in reducing Japan's reliance on oil price-linked gas from traditional sources, including Australia. MORE