Is Japan This Desperate?

Japan’s prime minister is in Russia for the first time in over a decade.

One of the major reasons: natural gas.

The two nations are ready to cooperate on gas projects in Japan, said Russian President Vladimir Putin after today’s meetings.

Here’s the most interesting part: Putin noted that Russian mega-producer Gazprom “is ready to invest its resources in new gas receiving facilities in Japan, [and] to invest in gas pipelines in Japan.”

The idea of a Russian firm owning part of Japanese gas infrastructure is shocking. Japan is one of the most closed and nationalistic of the developed nations.

If Putin’s words do indeed reflect discussions, it would indicate that the Japanese are very desperate for gas supply. Enough to let an outside nation “behind the curtain” into their domestic infrastructure.

The hunger for gas in Japan (and the rest of Asia) is going to be a major driver for the global market. A good reason to focus on projects close to this region. Perhaps even large, unconventional resources.

Here’s to getting it to where they need it,

Dave Forest

dforest@piercepoints.com

 

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