India Advocates Asian Gas Buyers Alliance

India has asked major gas importers in the region like China, Japan and South Korea to forge an alliance to extract better deals, reports Indian Express newspaper.

Natural Gas suppliers prefer Europe over Asia in offering favourable deals and price discounts, despite most of the growth in natural gas demand coming from Asia, the newspaper says.

Indian’s Oil minister M Veerappa Moily termed this difference in price as Asian premium and suggested that India, China, Japan and South Korea can come together to get favourable pricing from natural gas suppliers in the Gulf and elsewhere, reports Indian Express.

"We understand that it's not only demand supply imbalance, which govern prices for Asian markets. There are other elements too which determine the Buyer-Seller relationship.It has been observed in some recent deals that prices offered by the same seller to Europe and Asia vary greatly, beyond net back and business considerations," he said addressing the eighth Asia Gas Partnership Summit in New Delhi.

Moily said Asian buyers need to look into their sourcing and pricing strategies.

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