Japan’s largest utility company, Tokyo Electric Power Co., is in negotiations to buy liquefied natural gas from North America as a way to reduce the country’s reliance on nuclear power.
Most of the country’s nuclear power plants have been shut down in the wake of last year’s Fukushima Daiichi disaster.
Japan, already’s the world’s largest LNG importer, is now eying shale gas as a major fuel source for its power plants. Chubu Electric Power Co., Tokyo Gas, Osaka Gas Co. and Sumitomo Corp. already have deals in place to buy shale gas from North America.
The US government must approve any definitive agreement for Tokyo Electric to buy gas.
Texas is home to three major shale plays: the Eagle Ford Shale in South Texas, the Barnett Shale in North Texas and the Haynesville Shale, which spans portions of Texas, Arkansas and Louisiana.