TOKYO (Sputnik) — Japan plans to open a liquefied natural (LNG) gas exchange by the early 2020s, local media said on Monday.
Japan seeks to review its LNG supply contract procedures that preclude buyers under long-term contracts from reselling excess gas by opening its first gas exchange, the Kyodo news agency reported, citing an announcement made at a G-7 energy minister meeting taking place in Kitakyushu on May 1-2.
The move also seeks to reduce procurement costs by introducing the new element to the gas market, according to the the agency.
With Japan's Economy, Trade and Industry minister Hayashi. Agreed to increase LNG cooperation, push for EU-JP FTA. pic.twitter.com/eJFi72tqis— Miguel Arias Cañete (@MAC_europa) 1 мая 2016 г.
Japan is also set to build large-capacity gas storage facilities, with a view for making the country a regional hub for international gas supply contracts, the news outlet added.
In October, Japan's largest gas importer Jera Co. announced that it does not plan to renew its multimillion-ton long-term gas contacts after 2020. The company stated that it will order the bare minimum volumes of LNG required, with addition requirements to be covered by mid- and short-term contracts or spot purchases.