Japanese liquefied natural gas (LNG) importers are creating a buying pact to try to create a spot market based on supply and demand. Tokyo Electric Power and Chubu Electric Power are co-operating on contract talks with suppliers of 7 gigawatts of LNG, about half of the country's consumption. Currently, LNG is price-linked to oil, despite it being significantly cheaper than oil on an energy-equivalent basis. Japan continues to be a record-breaking importer of the gas after mothballing its nuclear power industry in the wake of the Fukushima disaster.
Japanese liquefied natural gas (LNG) importers are creating a buying pact to try to create a spot market based on supply and demand. Tokyo Electric Power and Chubu Electric Power are co-operating on contract talks with suppliers of up to 40 million metric tonnes of LNG, about half of the country's consumption. Currently, LNG is price-linked to oil, despite it being significantly cheaper than oil on an energy-equivalent basis. Japan continues to be a record-breaking importer of the gas after mothballing its nuclear power industry in the wake of the Fukushima disaster.