Close Menu
    Facebook X (Twitter) Instagram
    Facebook X (Twitter) Instagram
    SweetCrudeReportsSweetCrudeReports
    Subscribe
    • Home
    • Oil
    • Gas
    • Power
    • Solid Minerals
    • Labour
    • Financing
    • Freight
    • Community Development
    • E-Editions
    SweetCrudeReportsSweetCrudeReports
    Home » Japan proposes LNG contract clause for resale of cargoes

    Japan proposes LNG contract clause for resale of cargoes

    October 23, 2018
    Share
    Facebook Twitter LinkedIn WhatsApp
    *LNG cargo

    23 October 2018, News Wires — Japan’s trade ministry on Monday spelt out ways that buyers and sellers of liquefied natural gas (LNG) can rework supply contracts to remove restrictions on resale of cargoes which Japan last year said were anti-competitive.

    Japan’s anti-monopoly watchdog ruled in June last year that all new LNG contracts should not restrict resale of the fuel, marking a step towards liberalising the LNG market in Asia.

    But global LNG suppliers have been slow to revise their contracts for Japanese buyers.

    The trade ministry presented the so-called “model diversion clause” for supply contracts at an annual conference in Nagoya. The suggested language follows the lack of action on renegotiating contracts following the last year’ ruling.

    Buyers in Japan, the world’s biggest LNG importer, have long complained about the so-called destination clauses restricting resale. They want more leeway to resell spare cargoes but have been prevented by the clauses.

    The Japan Fair Trade Commission’s ruling last year found that the destination clauses, long-time features of LNG sales contracts that restrict buyers from selling cargoes to third parties, were anti-competitive.

    At the time it was thought that ruling would force the renegotiation of billions of dollars of existing LNG contracts.

    “No-one has struck out a destination clause on the basis of the ruling, as far as I’m aware,” one lawyer who has spent decades involved in LNG contract negotiations told Reuters at the conference.

    In new contracts, the clauses are rarely included, the LNG lawyer said.

    The trade ministry’s “model diversion clause” for LNG sale and purchases contracts spells out contractual arrangements for cargo diversions, including delivery specifications and profit sharing or compensation arrangements.

    • Reuters

    Related News

    Nigeria, Equatorial Guinea advance GoG gas pipeline project with new roadmap

    NNPCL, UTM FLNG seek speedy FID on 1.8m tonnes project

    Mozambique energy minister optimistic on TotalEnergies’ plan to resume LNG project

    E-book
    Resilience Exhibition

    Latest News

    FG, States, LGCs share N1.659 revenue in May 2025

    June 22, 2025

    Military efforts slash crude oil theft, as Minister hails Armed Forces

    June 22, 2025

    Nigerian Navy cracks down on oil theft, arrests 76 vessels in two years

    June 22, 2025

    Rivers, Bayelsa left out as FG delivers life jackets to Kwara over boat mishaps

    June 22, 2025

    Nigeria commits $200m to health, eyes BRICS partnerships

    June 22, 2025
    Demo
    Facebook X (Twitter) Instagram
    • Opec Daily Basket
    • Oil
    • Power
    • Gas
    • Freight
    • Financing
    • Labour
    • Technology
    • Solid Mineral
    • Conferences/Seminars
    • Community Development
    • Nigerian Content Initiative
    • Niger-Delta Question
    • Insurance
    • Other News
    • Focus
    • Feedback
    • Hanging Out With Markson

    Subscribe for Updates

    Get the latest energy news from Sweetcrudereports.

    Please wait...
    Please enter all required fields Click to hide
    Correct invalid entries Click to hide
    © 2025 Sweetcrudereports.
    • About Us
    • Advertise with us
    • Privacy Policy

    Type above and press Enter to search. Press Esc to cancel.