India, Japan Likely to Finalise LNG Cooperation Pact This Week
Indian oil minister Dharmendra Pradhan is expected to finalise an agreement with Japan to cooperate in jointly developing “a liquid, flexible and global LNG market” during his current tour of the country.
Pradhan is in Japan on a three-day visit beginning October 16 and will meet officials from the Japanese oil and gas industry and will also attend the sixth Annual LNG Producers Consumer Conference, he said on Twitter October 15.
“The visit is important to enhance the bilateral engagements in the oil and gas sectors within the overall framework of India-Japan Energy Dialogue. The visit also aims to enhance cooperation in establishing a transparent, efficient, truly global and balanced LNG market,” the Indian oil ministry said October 15.
During his visit, Pradhan will meet with Japanese minister of economy, trade, and industry, Hiroshige Seko to discuss issues of bilateral engagement in the hydrocarbon sector. A Memorandum of Cooperation (MoC) is scheduled for signing by India and Japan.
“The MoC will provide a framework for bilateral cooperate in facilitating flexibility in LNG contracts, abolition of [the] destination restriction clause and also explore possibilities of cooperation in establishing reliable LNG spot price indices reflecting true LNG demand and supply,” the Indian oil ministry said.
Pradhan will also meet representatives of Japanese firms, including Osaka Gas, Mitsui OSK Lines, Japex, and Jera in order to explore areas of further engagement with Indian companies.
Shardul Sharma