Jera, Kogas, Cnooc Sign LNG MoU

Japanese joint venture Jera has inked a memorandum of understanding to pool resources with Kogas and Chinese Cnooc relating to LNG, the company said March 23.  

The three large LNG Asian buyers will look at joint procurement of LNG, joint participation in upstream projects and co-operation relating to LNG shipping and storage.

“LNG demand fluctuates widely depending on economic conditions and energy policy in each country. Jera believes that in order to cope with such fluctuation it is essential to develop the business environment through means such as accommodation schemes between buyers,” the company said. 

Jera believes the MoU will provide a platform for sharing views on issues related to traditional LNG business practices such as destination restrictions and will help in investigating ways to gain even greater flexibility in procurement. The Japanese company will continue to work with LNG buyers to achieve even more competitive procurement in an LNG market undergoing great change, it said.

In December last year, Jera made its first spot LNG purchase from the US.

Shardul Sharma