Greetings!  
Within 13 months of the Fukushima nuclear disaster, Japan switched about 30% of electricity production from nuclear to natural gas. In September 2012, Japan paid YEN 19.43 Billion/day (= US$ 236 million/day) for natural gas.
Graphics and more details below in this newsletter. For detailed data and analysis see the 8th edition of our report on Japan's energy and electricity sector.
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 | | Japan pays US$ 236 million/day for natural gas (LNG+LPG, in September 2012) |
Natural gas payments increased about 50% since March 11, 2011:
Natural gas (LNG+LPG) import payments increased continuously, as natural gas replaced nuclear power for electricity production since March 11, 2011, and in September 2012 were YEN 19.43 billion/day (=US$ 236 million/day), corresponding to about 2% of Japan's GDP.
Payments are high because of (1) increased import volume, and (2) high prices for natural gas, because of Japan's special circumstances and because natural gas prices have traditionally been linked to oil price levels. Japan's Government and private sector are working to achieve purchasing sources at lower prices.
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 | | Japan pays high prices for LNG |
Natural gas prices vary greatly:
Natural gas prices depend strongly on the type of gas, location and contract conditions, and are traditionally often linked to oil prices. The Figure above shows that within the USA alone natural gas prices can vary currently between about US$ 2 - US$ 15, lowest prices at the well-head, and highest prices for liquified natural gas for export. Because of the special circumstances, Japan currently faces some of the highest prices. Recently, Japan's Government and the private sector have undertaken several steps to seek lower prices, and indeed it has been reported, that some recent purchase prices are about 30% lower - closer to mid-range US prices.
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