Japan's Jera seeks LNG alliance with Korea Gas, China's CNOOC

Shizuoka Gas

26/02/2016 09:35

TOKYO, Feb 26 (Reuters) - Japan's Jera Co is in talks with 
South Korea's Korea Gas Corp (KOGAS)  036460.KS  and China 
National Offshore Oil Corp (CNOOC) to create an alliance that 
gives the companies greater leverage to work out more flexible 
liquefied natural gas (LNG) contracts. 
    The three companies, including the world's two biggest LNG 
buyers, may come to an agreement within several days, a Jera 
spokesman said.  
    The main purpose of the alliance is to share challenges in 
the market, such as the destination restrictions on LNG 
shipments and inflexible arrangements such as the periodic 
taking of deliveries, the spokesman added. 
    The alliance would also consider the joint procurement of 
LNG and joint investment in upstream projects, but the alliance 
is unlikely to lead to any procurement deals any time soon amid 
excess global supplies, the spokesman added. 
    Jera, a joint venture of Tokyo Electric Power  9501.T  and 
Chubu Electric Power  9502.T , will surpass KOGAS as the world's 
single biggest buyer of LNG when it merges purchases in July 
with an annual take of around 40 million tonnes. 
 
 (Reporting by Osamu Tsukimori; Editing by Christian 
Schmollinger) 
 ((osamu.tsukimori@thomsonreuters.com, +813 6441 1857, Reuters 
Messaging: osamu.tsukimori.thomsonreuters.com@reuters.net;)) 
 
Keywords: LNG JERA/