ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailMenu BurgerPositive ArrowIcon PrintIcon SearchSite TitleTitle ChevronIcon Twitter
Politics

Japan to press gas exporters for pricing reform

TOKYO -- Japan's government will hold its first formal talks with a group of the world's top natural gas producers in hopes of lowering prices for a fuel that has surged in importance since the Fukushima nuclear disaster.

     The secretary-general of the Gas Exporting Countries Forum will travel to Japan to meet with senior officials from the Ministry of Economy, Trade and Industry next Monday.

     Sometimes called the OPEC for gas, the forum includes Qatar, Russia and the United Arab Emirates.

     The two sides will begin a joint review of how liquefied natural gas is traded. Asian countries complain that the prices they pay for LNG are out of touch with actual supply and demand because they track the price of crude oil. Japan will push the GECF to adopt a pricing arrangement that reflects international supply and demand for LNG.

     Meeting in Rome this week, energy ministers from the Group of Seven industrialized countries called for easing so-called destination clauses in LNG contracts, which prevent buyers from reselling the fuel. Doing so could expand the trade in LNG, helping bring prices down.

     Japan's LNG imports have ballooned since 2011, topping 7 trillion yen ($68 billion) in the year ended March 31. Heightened Japanese demand for the fuel is keeping prices elevated.

(Nikkei)

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Get Unlimited access

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends May 26th

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media