Japan Seeks EU LNG Help

摘要

Japan is looking to Europe for guidance as it steps up its drive for greater flexibility and non-oil pricing in term LNG sales into Asia. The post-Fukush-ima lobbying efforts also gained more traction last week when the world's largest LNG buyer agreed to set up a joint study group with India with the aim of lowering prices. The memorandum of understanding (MOU) was signed during the second LNG Producer-Consumer Conference in Tokyo, organized by Japan's Ministry of Economy, Trade and Industry (Meti). Japan and India — whose political relationship has improved as Tokyo's ties with China and South Korea weaken — share the view that regional buyers pay an "Asian premium." And taking a swipe at destination clauses in long-term contracts, they said it is essential to "review current business practices that hinder market liquidity." Meti Minister Toshimitsu Motegi said other Asian importers share the "sense of crisis," with a Chinese source telling WGI that China will likely participate in LNG pricing talks. But Chinese and Korean buyers were not part of the MOU. While this would have boosted its clout, such a buyers' group would risk being labeled a cartel, sources say (WGI Oct. 17'12).