Japan\’s Chubu Electric Power Co said on Friday it will sign a preliminary deal with India\’s GAIL as soon as possible to buy liquefied natural gas (LNG) together, the latest move by Asian buyers looking to cut prices for the fuel.
Liquefied natural gas (LNG) tanker, section view from side. (Photo credit: Wikipedia)
Rising demand for LNG in Asia, already the top destination for the fuel, has helped push its price to near-record levels and now buyers such as India and Japan are trying to find ways to cut their soaring gas import bills.
India, Japan and other Asian countries that together import 70 percent of the world\’s LNG met in December to discuss forming a buyers\’ club to get a better deal from suppliers.
Asian prices LNG-AS are now more than four times the cost of natural gas in the United States, where a boom in shale oil and gas has sharply reduced prices.
Apart from joint purchases of LNG, Chubu and GAIL aim to explore cooperation in other areas such as shipping, Chubu President Akihisa Mizuno told reporters on Friday.
Japanese Prime Minister Shinzo Abe is set to visit India on Saturday.
via UPDATE 1-Japan’s Chubu nears deal with India’s GAIL to buy LNG jointly | Reuters.
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