Regional LNG: JERA, KOGAS, CNOOC sign cooperation in LNG business

By Romel S. Gurky

JERA Co. Inc. announced Thursday that it has entered into a memorandum of understanding with Korea Gas Corporation (KOGAS) and CNOOC Gas and Power Trading & Marketing Limited (CNOOC) concerning cooperation in the LNG business.

Under this MOU, JERA, KOGAS and CNOOC will discuss opportunities for mutual collaboration in the LNG business, JERA said in a statement. Specific areas for discussion include joint procurement of LNG, joint participation in upstream projects, and cooperation relating to LNG shipping and storage.

LNG demand fluctuates widely depending on economic conditions and energy policy in each country. JERA said that in order to cope with such fluctuation it is essential to develop the business environment through means such as accommodation schemes between buyers. JERA also expects the MOU to 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.

JERA said it will continue to work together with LNG buyers and other leading companies both within and outside Japan as it seeks to achieve even more competitive procurement in an LNG market undergoing great change.

Editing by Reiner Simanjuntak