Japan Eyes Mexican Shale Gas Sector

Japan is planning to develop shale gas assets in Mexico with an aim to start importing the gas by mid 2020s, reports The Yomiuri Shimbun.

Prime Minister Shinzo Abe and Mexican President Enrique Pena Nieto are expected to discuss energy matter when they meet on Saturday in Mexico.

Mexico has the sixth largest shale gas reserves and it recently took a decision to allow foreign companies to develop country’s energy resources.

Abe is looking to seize the opportunity and make Japan the first foreign country to join Mexico’s shale gas development project, says The Yomiuri Shimbun.

Sources have told the newspaper that Japan Oil, Gas and Metals National Corp. and Petroleos Mexicanos, known as Pemex, will sign a memorandum during the summit that includes cooperation on technical development in gas businesses and human resource development.

If Japan can participate in shale gas development in Mexico, the fuel will be transported through pipelines to a port on the Pacific coast and exported to Japan in the form of liquefied natural gas (LNG).