Japan’s biggest city gas supplier, Tokyo Gas and Kyushu Electric Power have entered into a deal to cooperate in the liquefied natural gas (LNG) business.
The two companies said in a joint statement on Wednesday that they are planning to form a strategic alliance to jointly buy LNG “to contribute the further flexibility and the cost reduction.”
“We are considering the cooperation of securing LNG to ensure the stability of supply of both companies, including in an emergency,” the statement said.
LNG buyers have been for years urging the need for more flexible LNG contracts, especially when it comes to destination clauses that restrict them from reselling or swapping cargoes.
In a similar move, Japan’s JERA, the world’s largest corporate LNG buyer, has signed a deal in March with South Korea’s Kogas and China’s CNOOC Gas and Power Trading & Marketing to cooperate in the LNG business and to secure more flexible contracts.
The Tokyo-based company also recently signed a deal with the Dubai Supply Authority (DUSUP).
LNG World News Staff