Japan regulator ends LNG resale restrictions
(Adds comment, detail)
By Osamu Tsukimori and Mark Tay
TOKYO, June 28 (Reuters) Japan anti monopoly regulator ruled on Wednesday that all new contracts for liquefied Canada Goose Parka natural gas (LNG) should not contain restrictions on reselling cargoes of the fuel, adding momentum to a push to liberalise the LNG market.
The decision, which was in line with growing market practice, is likely to lead to more trading of LNG cargoes by buyers in Japan, the canada goose uk outlet world biggest importer of the fuel, canada goose black friday sale and could canada goose clearance see challenges to similar restrictions buy canada goose jacket cheap elsewhere in Asia.
Asian LNG buyers have long complained that having destination clauses in LNG contracts unfairly restricts trading of the fuel at times when it would make more economic sense canada goose uk shop for buyers to on sell supplies to other markets.
The ruling comes as new LNG projects have boosted supply and many producers have already relented on the issue, offering contracts without resale or destination restrictions.
is not unexpected. this is Canada Goose online very much consistent with Japan Canada Goose Online efforts to liberalise canada goose coats the gas market, said Neil Beveridge, oil and gas analyst at AB Bernstein Canada Goose Jackets in Hong Kong.
removing the destination canada goose coats on sale clauses, the idea is to cheap canada goose uk increase liquidity in the market which is going to be a key step towards market liberalisation and development of a pricing hub, he said.
A spokesman for Jera, a joint venture between Tokyo Electric and Chubu Electric that is the world single biggest LNG buyer, said that easing or scrapping destination clauses was essential to canada goose uk black friday boosting liquidity of LNG and developing a healthy LNG market in Asia.
Japan is in a strong position to renegotiate supply canadian goose jacket terms given it spent about $30 billion to import nearly 85 million tonnes of LNG in the year to end March, according to official trade data, about a third of globally traded LNG.
is obviously a reflection of a market where Canada Goose Outlet buyers have a lot of canada goose clearance power over sellers at the moment given the oversupply that we are canada goose store seeing, Beveridge said.
The move is a reprise of the upheaval in Europe in the early 2000s when the European Union found certain gas market practices anti competitive.
Japan Fair Trade Commission late last uk canada goose year ordered the country LNG cheap Canada Goose buyers to provide details on contract requirements that prevent them from reselling the liquefied fuel to third parties.
had been talking about this for quite canada goose clearance sale a canada goose factory sale while. A lot of the sellers Canada Goose Coats On Sale already thecanadagooseoutlet loosened their buy canada goose jacket restrictions. It Canada Goose sale will probably impact the Qatari contracts especially in this oversupply climate, a Singapore based LNG trader said.
Producers in Qatar have several long term LNG contracts up for negotiation with canada goose Japan between now and 2021, while producers in Malaysia will also be uk canada goose outlet affected.