WHY DOESN’T JAPAN HAVE A NATURAL GAS PIPELINE NETWORK? CONSIDERATION FROM THE DETERMINANT OF THE CHOICE BETWEEN LNG TANK TRUCKS AND PIPELINES

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