Inherency 15 Inherency Energy Dept Blocking 16

UX – Japan Demand High

Demand is increasing, old sources insufficient

Senior fellow and Director of the Energy Security Initiative at Brookings, Charles, “Liquid Markets: Assessing the Case for US Exports of Liquefied Natural Gas,” 5-2-12, http://www.brookings.edu/~/media/events/2012/5/02%20lng%20exports/20120502_lng_exports

While about 45 percent of the Pacific Basin’s total gas demand is met by LNG imports from within the region, an additional 40 percent of its demand is met by LNG imports from outside the region, primarily from the Middle East and Russia.59 Qa- tar alone accounted for 11 percent of Japanese LNG imports in 2010. Qatari production pre- dominantly serves both the European (mostly the U.K.) gas market and the Pacific Basin gas market. Current uncontracted supply available on the spot market is likely to be sent to Asia to take advan- tage of the Pacific Basin’s higher prices. However, other than meeting the existing spare capacity for LNG production, the Middle East will have little excess supply capacity. This is in part because Qa- tar is trying to preserve its price structure with the East Asian market and partly because there is a moratorium on further development of Qa- tar’s North Field, which together with Iran’s South Pars Field, is the largest gas field in the world. An- other reason for the limited excess supply from the Middle East is that Oman, which is the sec- ond largest Middle Eastern LNG exporter to Asia, is experiencing declining LNG exports as more gas is being consumed domestically. Iran, which has the world’s second largest gas reserves, has proposed several LNG projects, but has been un- able to implement them because of sanctions. Gas demand in Asia remains strong, led by Ja- pan, South Korea, and Taiwan, which accounted for more than half of all global LNG imports in 2010.60 Japan, the world’s largest importer of LNG, has seen a particular increase in projected natural gas demand as a result of the accident at the Fukushima nuclear power plant following the earthquake in March 2011. The nuclear accident, which has caused a short-term shutdown of most of Japan’s nuclear reactors, has also prompted a review of Japan’s nuclear energy policy. The re- view comes largely at the demand of the public, which is wary of Japan’s reliance on atomic pow- er.61 In the event of a move away from nuclear power, a significant amount of Japan’s electricity production will likely be met by additional LNG shipments. It is estimated that in 2012, Japan will require an additional 974 bcf of LNG to make up for the electricity shortfall resulting from the Fu- kushima accident and the reduction in nuclear power generation.62

UX – AT: Canada Solves

Canada is no longer projected to be an LNG trade partner with Asia

(“Will Asian gas deal quash Canada’s LNG export hopes?”,JEFF RUBIN: 20 year journalism veteran, associate vice president of communications for Hillel ,May. 26 2014, 5:45 AM ED, http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/will-asian-gas-deal-quash-canadas-lng-export-hopes/article18842432/)