Sunday, June 08, 2014
Huge Russia-China Gas Deal Still Leaves Door Open To Japan
Via Yahoo!: For once, China looks to have done Japan a favor. In clinching a $400 billion deal last month to buy Russian gas, China may end up helping out its old political and economic rival in a way that matters hugely for Japan - energy security. The China-Russia agreement, the biggest gas deal ever, unlocks new gas supplies and could bring down gas prices across Asia, a development that would pay the biggest dividends for Japan, the world's top buyer of liquefied natural gas. Other big Asian gas buyers such as South Korea and Taiwan could also benefit. The implications are potentially huge for Russia, for China and much of Asia, and also for Europe. All the bases, that is, except one: the United States. The shale gas revolution in the States has led natural gas producers to envision an export boom in which U.S. companies become key suppliers to East Asia while countering Russian influence. U.S. President Obama said in 2012 that the U.S. is becoming "the Saudia Arabia of natural gas".