Oil-linked LNG not reasonable, says Japan Gas Association
Japanese buyer wants imports linked to gas hub prices, rejects argument for oil-indexation
Japanese gas importers want to buy liquefied natural gas (LNG) linked to US or European gas hub prices and move away from traditional oil-linked contracts, the Japan Gas Association told reporters at the WGC2012.The world’s largest LNG importer buys most of its gas on oil-linked contracts, but soaring demand after the Fukushima Daiichi disaster last year and high crude prices means Japanese customers are paying up to seven times more compared to US gas prices.“For the natural gas price to be linked to the oil price right now has lost any economic rationale,” Japan Gas Association chairman Mitsunori Torihara said.“Looking at the main uses of natural gas right now, it’s for power generation an
Also in this section
16 May 2024
Flat oil growth in 2024 highlights mounting industry problems
15 May 2024
Five years ago, Uzbekistan turned to a private company called Saneg to reverse the fortunes of its oil industry. Results so far are encouraging, and according to CEO Tulkin Yusupov, further progress is on the way
14 May 2024
But there is still plenty of appetite for the country’s LNG in the Asia-Pacific region
14 May 2024
The former CEO of Pioneer, Scott Sheffield, has opened a can of worms through his association with OPEC+ and its market management strategy