Thursday, August 16, 2007

Quake ignites global gas demand

GLOBAL liquefied natural gas demand is set to soar by up to 10 million tonnes a year after a Japanese earthquake caused the closure of the world's largest nuclear power plant.

The closure would have a major effect on the world LNG market because there was insufficient capacity at the moment to meet demand. The possibility that the plant would remain closed permanently could affect previous estimates of the world's LNG supply/demand balance.

Japanese investors have sold TEPCO stock because they believe the company will have to switch to oil, coal and gas-fired power plants at a time when prices for the fuels are at or near records. It has already asked six other Japanese electricity-generating companies to make up any supply shortfalls....

From The Australian