gas vs nuclear in japan

More evidence of the decline of nuclear power-generation in Japan, which will need to be replaced by LNG and/or coal. There is widespread concern about another nuclear power station (the Hamaoka plant) closer to Tokyo, which sits on the intersection of tectonic plates. Built in 1970, the wisdom of its location, continuing operation (and dubious saftey record) is now under review.

http://www.theaustralian.com.au/news/world/fears-over-n-plant-close-to-tokyo/story-e6frg6so-1226030969688

Nuclear in Japan will NEVER recover from this. People may have short memories, but when we are talking about major disasters, the reminders and the effect on public policy last a long, long time. The nuclear industry in the US never recovered after Three Mile Island. In fact, no nuclear power station has been authorised to begin construction since the Three Mile Island incident*, (and Fukushima is far worse than 3MI).

It is perhaps insensitive to talk about the beneficiaries out of the Japanese disaster. But, markets continue, and the Japanese demand for LNG is going to rise, both in the short and medium term. For ESG, negotiating with Marubeni for an equity/offtake deal and partial or full sale of LNGN ... well, we are in the right place at the right time to be part of the solution to Japan's energy needs.

The successful sale of LNGN would be a win for ESG, a win for growth in NSW, and the securing of a large, valuable and reliable source of gas for Japan.

I hope it happens. And then Santos can decide what they want to do...

Yaq

* There were, however, new nuclear stations completed post 3MI