Japanese liquefied natural gas (LNG) importers are creating a buying pact to try to create a spot market based on supply and demand. The deal is being brokered by the Japan LNG Association (JLA), which represents more than 100 companies that import LNG. 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.