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Project Insights

Japanese LNG buyers look to joint purchasing

Spurred by rising competition in Japan’s deregulated gas and power retail market, companies are increasingly pooling resources to jointly purchase smaller volumes over shorter timeframes Spurred by rising competition in Japan’s deregulated gas and power retail market, companies are increasingly pooling resources to jointly purchase smaller volumes over shorter timeframes.
By Sally Bogle 19 December 2019 Asia Pacific / LNG 0 34896
An LNG tanker arrives at a port in Yokohama, southwest of Tokyo. (PA)

The key issue: Tokyo Gas and Chugoku Electric have signed a memorandum of understanding with a view to partnering up on LNG procurement.

Interfax analysis: A surfeit of global LNG at lower prices is continuing to provide Japanese buyers with the opportunity to take a more innovative approach to purchasing.

Japanese companies have typically sourced LNG from large-scale export projects over periods of 25-30 years. However, staggered deregulation in Japan’s downstream gas market means companies are now competing locally on price, leading to...