One of the few beneficiaries of the earthquake in Japan has been natural gas.

The damage done to the Fukushima Daiichi nuclear power plant in the wake of Japan’s earthquake and the ensuing tsunami has put into question the use of nuclear energy to power the nation. This may lead to a power shortage in the country and liquefied natural gas (LNG) has been earmarked as a possible short-term solution to the crisis. With such an oversupply of natural gas it is not clear whether increased consumption from Japan would even have a material impact on prices, and suppliers may consider capping prices in order to avoid making this a profiteering exercise. Japan is currently the world’s largest importer of LNG so the channels are already in place to deliver the product to the country.

However, if the nuclear disaster in Japan pushes other economies away from nuclear energy then the outlook for natural gas might get a whole lot brighter very quickly. German Chancellor Angela Merkel has already announced a three-month moratorium on extending the life-time of the 17 nuclear power stations in the country. A move from Germany towards LNG as an immediate source of energy would be a boon for the gas industry. In the short-term, however, seasonality as winter ends and the weather gets warmer may weaken the demand for natural gas and put a lid on potential gains in the price of the commodity.