Why Japan and India wants to create an LNG consumer group? What impact will it have on producer countries? by Dr. Theodore
It’s true that the governments of Japan and India announced on September a joint buyer’s group agreement in order first to increase the importation of LNG and second to improve their bargaining position with energy exporters.
Japan and India, as major LNG consuming countries in Asia, plan to work together towards the development of a market environment protocol or alternatively I can say ‘’constitution’’ that would enable effective, stable and globally competitive LNG procurement.
Today, Asian LNG importers such as Japan and China paid as much as $16 compared to $3 in US Gulf Coast and $11 in Europe (UK). Japan is the world’s biggest importer of the chilled gas by 12% in 2011, 11% in 2012 and almost the same for this year.
The country spent more than $66 on LNG imports in 2012, a figure that’s expected to balloon to $756billion this year. As a result, I believe that the group of two is trying to reduce I can say the ‘’Asia Premium’’ and diversify their import energy basket of alternative sources.