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Tokyo Gas will not accept destination clauses in new LNG contracts

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According to Reuters, Japan’s biggest city gas supplier, Tokyo Gas Co., will not accept new contracts for long-term purchases of LNG that contain clauses restricting where the gas can be sold.

“We have no intention of signing new contracts unless the destinations are free,” Tokyo Gas President Michiaki Hirose declared.

Hirose’s comments follow the decision by Japan’s Fair Trade Commission that the so-called destination clauses that restrict the resale of LNG cargoes are anti-competitive. Since the ruling, Japan’s gas importers have been pushing to either revise their contracts or have vowed not to sign new contracts containing the clauses.

Read the article online at: https://www.lngindustry.com/liquid-natural-gas/05102017/tokyo-gas-will-not-accept-destination-clauses-in-new-lng-contracts/

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