TEPCO Looking at US Shale Gas Imports

Tokyo Electric Power Co. (TEPCO) is planning to import affordable shale gas from the US and is talking to energy firms on this issue.

Yomiuri Shimbun reports that if the negotiations are successful, the utility could get the gas at half the price it currently pays for LNG. The report further added that the quantity of gas expected to be imported could be in the region of 2.4 million tonne a year starting as early as 2016.

The company is negotiating with firms such as Cheniere Energy Inc. and Sempra Energy, sources told the newspaper.

In fiscal 2011, TEPCO imported about 24 million tons of LNG, up 15 percent from the previous year, for about 1.5 trillion yen, 45 percent higher than the previous year.

However, the U.S. government has designated natural gas a strategic commodity. Japan thus needs to obtain approval from the U.S. government to import shale gas as the two countries do not have a free trade agreement.