Japan’s energy company JERA has entered into a memorandum of understanding (MoU) with South Korean natural gas company Korea Gas Corporation (KOGAS) and China-based operator of LNG terminals and pipeline networks Cnooc Gas and Power Trading and Marketing Limited (CNOOC) to cooperate in the LNG business.
Under the MOU, the parties intend to discuss joint procurement of LNG, joint participation in upstream projects, and cooperation related to LNG shipping and storage.
“LNG demand fluctuates widely depending on economic conditions and energy policy in each country. JERA believes 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 said.
JERA added it expects the MOU to provide a platform for sharing views on issues related to traditional LNG business practices such as destination restrictions. The firm said it will help find ways to gain even greater flexibility in procurement.
Commenting on the newly signed MOU, Lee Seung-hoon, President of KOGAS, said that the firms from Korea, China and Japan are now expected to play a more active role in the LNG market.