Asian LNG Buyers 'Should Come Together': Pradhan

Indian oil minister has reiterated that Asian LNG buyers should come together so that they get a better deal in the global market. Large Asian LNG buyers, including India, could benefit by joining hands and thereby, possibly, bring in more equitable trade deals, minister Dharmendra Pradhan said during the fifth IEF – IGU Ministerial Gas Forum that was held in New Delhi December 6 on the sidelines of Petrotech 2016.

Indian oil Dharmendra Pradhan (Credit: Indian government)

India, being a large LNG importer, has on many occasions expressed its desire to have a much closer cooperation among Asian LNG buyers like Japan and South Korea. In 2014, Gail India and Japanese trading house Sumitomo Corporation agreed to work together in the fields of gas procurement and petrochemicals.

Pradhan also highlighted the global gas prices in the context of emerging LNG demand-supply interplay. LNG prices have been soft over the past 18-24 months, much in tandem with crude prices. He stated that LNG contracting mechanisms are changing with short term contracts growing and replacing long term contracts.

In his concluding remarks, Pradhan said that on one hand the future of gas is bright but on the other hand established policies and business models require closer consideration under the current energy market projections.

Shardul Sharma