India, Japan to Jointly Buy LNG

From Economic Times

India and Japan, two of the world’s biggest buyers of liquefied natural gas, may this month sign an agreement to look at jointly procuring LNG so as to cut prices for the fuel.

GAIL India Ltd, the nation’s biggest natural gas distributor, may this month sign a memorandum of understanding with Japanese utility Chubu Electric Power Co to jointly procure LNG.

“We are discussing with them (on the agreement) and shortly we will be able to sign a MoU,” GAIL Chairman and Managing Director B C Tripathi told reporters here.

The agreement will be for cooperation in natural gas sector – from LNG sourcing to shipping and supply. “It will be for all-round cooperation,” he said.

The two nations, who feel LNG sold to Asian countries is priced more than that supplied to consumers in Europe and the US, had in October 2012 agreed to carry out a joint study to examine ways to mitigate increasing import costs in Asia as well as to maintain stable supplies of LNG to the region.

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