Tokyo Gas only to sign LNG deals with no destination clauses

Tokyo Gas only to sign LNG deals with no destination clausesImage courtesy of Tokyo Gas

Japan’s Tokyo Gas will only sign long-term contracts in the future if the destination clause, restricting where the cargo can be sold, is included. 

The company’s president Michiaki Hirose was cited by Reuters as saying that Tokyo Gas has no intention of signing new deals with destination restrictions.

The company’s decision follows the ruling of Japan’s Fair Trade Commission saying that the destination clauses restrict competition.

This has prompted Japanese buyers to either rework existing contracts or look for new deals that have no such restrictions.

Tokyo Gas is currently negotiating new deals but is using the FTC ruling as leverage in its negotiations with potential suppliers.

In addition, the company plans to increase its share of short-term and spot LNG deals to 30 percent of its total demand to be better prepared to respond to the volatile market.

Share this article

Follow LNG World News

Events>

<< Dec 2017 >>
MTWTFSS
27 28 29 30 1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31

Singapore Maritime Technology Conference and Exhibition (SMTC) 2018

The 3rd Singapore Maritime Technology Conference and Exhibition (SMTC) 2018…

read more >

CWC Japan LNG & Gas Summit

The inaugural CWC Japan LNG & Gas Summit, with participation and support from METI, JERA, Tokyo Gas and IEEJ, is the dedicated platform for international suppliers…

read more >

Asia Pacific Maritime and Offshore Exhibition 2018

7 years in the making, APM is the premier shipbuilding & marine, workboat and offshore exhibition in Asia…

read more >

CWC 2nd Papua New Guinea Petroleum & Energy Summit

The 2nd CWC Papua New Guinea Petroleum and Energy Summit is held under the patronage of the Prime Minister of Papua New Guinea…

read more >