Japan Times: Asian Nations Call for Shake-up of LNG Trade

Consumers of liquefied natural gas on Wednesday called for more flexibility in how the fuel is traded in Asia. Rigid contracts and prices linked to those of crude oil have been seen as obstacles to steady development of the LNG market.

Although consuming nations have welcomed a recent fall in LNG prices in parallel with lower crude oil prices, LNG is traditionally traded at higher prices in Asia than in other parts of the world, characterized by large-volume, long-term contracts that often span 20 years.

“A market that is flexible and can function better will provide benefits for producing and consuming countries,” Japanese Economy, Trade and Industry Minister Yoichi Miyazawa said in a speech at the LNG Producer-Consumer Conference, which his ministry hosted. MORE