LNG buyers have not asked Inpex to revise destination clauses
Published by Joseph Green,
Editor
LNG Industry,
Reuters are reporting that buyers of long-term LNG contracts have not asked Japan's Inpex Corporation to revise their destination clauses after the country's watchdog urged a revision of anti-competitive practices in contracts that restrict sales to third parties.
Japan's Fair Trade Commission ruled in late June that new long-term LNG contracts signed with Japanese buyers could not have destination restrictions, and urged buyers to try to revise existing contracts to remove anti-competitive practices at an early date.
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 for buyers to on-sell supplies to other markets.
JERA Company has since then contacted buyers and they have been told that some sellers are open to removing destination restrictions.
Other Japanese buyers are also looking to change their contracts. Tokyo Gas is also seeking more flexibility in its new contracts.
Despite this background, Inpex has not been contacted by its long-term LNG buyers to renegotiate existing contracts.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/07082017/lng-buyers-have-not-asked-inpex-to-revise-destination-clauses/
You might also like
ORION SPIRIT to set sail as Korea's 500th LNG carrier exported since 1994
Ministry of Trade, Industry, and Energy Minister, Dukgeun Ahn, attended the naming ceremony for the LNG carrier ORION SPIRIT on 18 April 2024 at Samsung Heavy Industries’ Geoje Shipyard, marking the 30th anniversary of Korea's first LNG carrier built in 1994.