Two of the largest importers of LNG, Japan and India are considering coming together to buy it at a cheaper price.
Last October they conducted a study to work out how to combat the rising costs of LNG, this September they signed a deal to develop a ‘market environment that would enable an effective, stable and globally competitive LNG procurement.’
The September Agreement referred to the high prices in Asia as ‘the Asian Premium’, as they pay higher costs than Europe and the US.
Japan is reportedly paying five times more for natural gas than the US.
The two countries will look at whether pooling their spending power could be a solution over the next three months.
Speaking at the 8th Asia Gas Partnership Summit, India’s Oil Minister M. Veerappa Moily also called on other major purchasers in the region – including China and Korea – to help forge an Asian buyers group to bring down the price.