US LNG threat talked down by Inpex

Japanese producer Inpex has played down the competitive threat of cheap US LNG to Australian projects. Kazuhiko Itano, VP of corporate strategy and planning at Inpex has cited a number of factors including, the likely increase in US gas prices, the expense in transporting shale gas and security concerns in the US meaning that North America LNG export would take longer and would not be as large as expected. Fears of a flood of cheap shale from the US have many in Australia nervous that our North American competitors will undercut domestic ventures into the Japanese market.

Inpex is increasing investment in overseas LNG exploration and production primarily due to Japan’s need for alternative fuel sources in the wake of the Fukushima nuclear accident. Mr Itano also stated that Inpex expects to spend approximately AUD$790 million on exploration around the world over the next 5 years.

Inpex will be presenting at LNG Outlook 2012 in November this year in Perth. To find out more about the event, click here.