Report: Japan’s trade commission starts LNG destination clauses inquiry

Report: Japan's trade commission starts LNG destination clauses inquiry

The Japanese Fair Trade Commission has reportedly launched a formal investigation into the destination clauses within the LNG supply contracts signed by the country’s LNG importers. 

The FTC has ordered Japan’s LNG buyers to provide details on contract requirements, preventing the reselling of LNG to third parties, Reuters reports, citing sources close to the matter.

The regulator intends to review whether the destination clauses limit competition, which could lead to a number of contracts, worth hundreds of billions of dollars, being renegotiated.

The world’s largest LNG importer, Japan, together with other Asian buyers, believes the clauses restrict the trading of LNG in cases when it would be better to sell to other markets.

The companies that fail to comply with orders that have reportedly been issued late last month could face penalties. The deadline for submitting the requested information is the end of November, the report says.

Earlier in May,  Japan’s Ministry of Economy, Trade and Industry (METI) recommended the supply contracts to be reworked in order to allow the buyers to resell the imported LNG or negotiate better prices.

 

LNG World News Staff

Share this article

Follow LNG World News

Events>

<< Nov 2019 >>
MTWTFSS
28 29 30 31 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 1

2nd Global LNG Forum

Global LNG Forum is an exclusive networking and knowledge-sharing platform for top experts and business leaders in the industry.

read more >

Budapest LNG Summit 2019

The Budapest LNG Summit is a niche event focused on the up and coming LNG region of Central & Eastern Europe (CEE).

read more >

CWC World LNG Summit & Awards Evening

The CWC World LNG Summit & Awards Evening will be returning to Rome in 2019 to celebrate it’s 20th year.

read more >

LNG Pricing, Trading & Hedging: 3-Day Training Course – Singapore / Jan 2019

This three-day training program provides a unique opportunity to learn and apply the practical skills, knowledge and tools needed to:…

read more >