India’s government has approved the memorandum of cooperation between India and Japan for the establishment of a liquid, flexible and global LNG market.
Under the initiative signed in January 2016, the two sides had agreed to work together in promoting energy markets and affirmed to promote a transparent and diversified Liquefied Natural Gas (LNG) market through the relaxation of the restrictive destination clauses.
The MoC aims to strengthen the bilateral relationship between the two countries, a statement by India’s ministry of petroleum and natural gas reads, adding that it will contribute to the diversification of gas supplies for India.
This will also strengthen India’s energy security and lead to more competitive prices for consumers.
“The MoC provides a framework to cooperate in facilitating flexibility in LNG contracts, abolition of destination restriction clause and also explore possibilities of cooperation in establishing reliable LNG spot price indices reflecting true LNG demand and supply,” the statement reads.