At the end of June, the Japan Fair Trade Commission (JFTC), which enforces the country’s anti-monopoly legislation, published the results of its investigation into restrictive practices in long-term LNG sales contracts. It looked into the issue of contractual clauses which impose restrictions, or conditions, on the destination to which LNG cargoes can be delivered, and concluded that in certain circumstances, and particularly in FOB contracts, such contractual provisions were likely to contravene Japan's anti-monopoly legislation.
This is an important decision. The large majority of Asian LNG contracts contain destination restrictions of one form or another, and the JFTC report attracted a lot of attention and press comment. But how much difference has it actually made, and what actions are buyers and sellers taking as a result of the JFTC report? Will it, as many press reports have suggested, speed up the development of more liquid traded markets?
Subscription Benefits
Our three titles – LNG Business Review, Gas Matters and Gas Matters Today – tackle the biggest questions on global developments and major industry trends through a mixture of news, profiles and analysis.
LNG Business Review
LNG Business Review seeks to discover new truths about today’s LNG industry. It strives to widen market players’ scope of reference by actively engaging with events, offering new perspectives while challenging existing ones, and never shying away from being a platform for debate.
Gas Matters
Gas Matters digs deep into the stories of today, keeping the challenges of tomorrow in its sights. Weekly features and interviews, informed by unrivalled in-house expertise, offer a fresh perspective on events as well as thoughtful, intelligent analysis that dares to challenge the status quo.
Gas Matters Today
Gas Matters Today cuts through the bluster of online news and views to offer trustworthy, informed perspectives on major events shaping the gas and LNG industries. This daily news service provides unparalleled insight by drawing on the collective knowledge of in-house reporters, specialist contributors and extensive archive to go beyond the headlines, making it essential reading for gas industry professionals.
