A New Idea for LNG Trade: Enhancing Market Competition through a Tanker-Based Trading System

Hashimoto, Satoru

doi:10.24112/jaes.040002

Cited by 3 publications

(3 citation statements)

References 12 publications

(22 reference statements)

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“…Turner and Johnson (2017) [27] denote that LNG trade is superior to pipeline transportation, and then point out that importers and exporters can easily send and receive gas to any locations with liquefaction and regasification facilities when LNG trade is possible. Xunpeng (2016) [20] and Hashimoto (2020) [28] describe the prospect in Asian LNG spot and hub markets.…”

Section: Organizations and Lng Supply Chainsmentioning

confidence: 99%

The Importance of Government Support for Pipeline Network Construction

Hashimoto¹

2023

Pipeline Engineering - Design, Failure, and Management

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This chapter describes that, focusing on economics theory, a country needs its government support to construct a pipeline network throughout the country. In Japan, before deregulation, vertical integrated companies (gas utilities) provided natural gas to customers in their monopoly area respectively. When the companies transport gas into their own areas, the companies choose to construct pipelines or to use LNG tank trucks from the sight of their strategies. Focusing on long-term uncertainty, short-term uncertainty, and locations, this chapter analyzed the factors of pipeline constructions. The results indicate that if there is another gas utility near a company, then the company construct a pipeline to the gas utility to transport gas. In contrast, if there are no neighbor utilities, the company tends to purchase gas via LNG tank truck. This means gas companies do not construct a pipeline network, or do not try to do it, but construct point to point pipelines. Therefore, without government supports, a pipeline network would not be constructed throughout the country.

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Section: Organizations and Lng Supply Chainsmentioning

confidence: 99%

The Importance of Government Support for Pipeline Network Construction

Hashimoto¹

2023

Pipeline Engineering - Design, Failure, and Management

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“…Turner and Johnson (2017) describe that it is easy for importers and exporters to send and receive gas to any locations with liquefaction and regasification facilities when LNG trade is possible. Xunpeng (2016) and Hashimoto (2020) point out the importance of spot and hub markets in Asia. There are no studies related to the choice of LNG and pipeline gas although several studies are related to LNG supply chains.…”

Section: Literature Reviewmentioning

confidence: 99%

Why Doesn’t Japan Have a Natural Gas Pipeline Network? Consideration From the Determinant of the Choice Between LNG Tank Trucks and Pipelines

Hashimoto¹

2021

IJEEP

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This study considers the importance of comprehensive pipeline network plans with exploring the determinants of vertical integration in Japan's natural gas distribution utilities from the perspective of transaction cost economics. Japan's natural gas industry is reliant on imported liquefied natural gas (LNG) that normally requires regasification prior to consumption. Unbundling of the industry has not been enforced and while some local distribution utilities purchase gas via pipelines that is regasified by the seller, others choose LNG from tank trucks with subsequent regasification occurring inhouse (vertical integration). Estimating the determinants of vertical integration in terms of transaction cost economics, I deduce the cause of poor pipeline networks in Japan. This study found that local distribution utilities prefer to purchase natural gas via pipelines when there are neighboring wholesalers or utilities. Hence, a broad pipeline network has never been constructed because local distribution utilities construct point-to-point pipelines to neighboring utilities or wholesalers. This indicates that without pipeline network planning by the government, comprehensive infrastructure policies, or financial support, a broad pipeline network will not be built throughout the country.

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“…[3] Hence, maritime LNG transport allows exporters to send merchandise to all locations with a functioning liquefaction plant, while importers may collect gas from all locations with liquefaction plants. [4] It is also important to mention that, compared to pipeline gas, LNG is purer. As LNG must be subjected to the process of liquefaction, it is then purified from most contaminants, a step that is overlooked during pipeline transport.…”

Section: Introductionmentioning

confidence: 99%

LNG Market and Fleet Analysis

et al. 2021

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This paper is part of larger research on the impact of present and future air emissions from the shipping industry and especially the environmental impact of the rapid spreading of the LNG as a fuel in the industry. Therefore, it was important to gather data related to the LNG market and perform an analysis to gain realistic insight into the market behaviour. This paper analyses the situation and trends of the LNG shipping market over a longer period to predict future developments. Data analysis of the several aspects and patterns of the trade has been performed; the results obtained can enable prediction of the market situation for the future. From the data analysis and predictions of the LNG market, continuous growth in the following years is expected, which linked to an increase of the LNG fleet and number of importing countries. Research has shown that new propulsion alternatives such as MEGI and XDF are appearing on the market as the first choice for new builds, while steam turbines are slowly disappearing. Although market growth is projected from all research parameters, the situation has changed due to the COVID-19 pandemic and its impact on the market. Consequently, growth forecasts will not be realized in 2020.

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A New Idea for LNG Trade: Enhancing Market Competition through a Tanker-Based Trading System

Cited by 3 publications

References 12 publications

The Importance of Government Support for Pipeline Network Construction

The Importance of Government Support for Pipeline Network Construction

Why Doesn’t Japan Have a Natural Gas Pipeline Network? Consideration From the Determinant of the Choice Between LNG Tank Trucks and Pipelines

LNG Market and Fleet Analysis

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