Asia/Pacific News
Japan, India to Discuss LNG Pricing Mechanisms
Japan and India are holding talks in Tokyo today and Wednesday to discuss the pricing, demand, supply, procurement, and trends of liquefied natural gas (LNG), a Japanese government source has told Platts.
The talks will take place as a continuation of talks held in New Delhi last December over a joint study on LNG pricing mechanisms in the Asia-Pacific region.
Findings of the report will be presented at the second LNG Producer-Consumer Conference to be held this autumn in Tokyo, the source said.
Japan, the world's largest LNG importer, and India, which is emerging as a major LNG buyer agreed to carry out the study after senior-level meetings in October 2012 between Japan's Ministry of Economy, Trade and Industry and India's Petroleum Planning and Analysis Cell.
Both countries see the current oil-indexed pricing for LNG imports in Asia as no longer valid, and are looking for ways to maintain stable supplies and prices.
Prices of LNG imported into Japan currently average almost $16.70 per million British thermal units (Btu), while U.S. natural gas futures trade in New York for about $2.83 per million Btu.
Japan is also seeking to join the Trans-Pacific Partnership Trade Agreement to improve its access to U.S. LNG.
