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Cabinet approves signing of the Memorandum of Cooperation between India and Japan on establishing a Liquid, Flexible and Global LNG Market

Delhi 

approves signing of the Memorandum of Cooperation between and on establishing a Liquid, Flexible and Global LNG Market

The Union chaired by Prime Minister Shri Narendra Modi has approved the signing of the Memorandum of Cooperation (MoC) between and on establishing a liquid, flexible and global LNG Market.

The MoC will promote bilateral relationship between and in the energy sector. It will contribute to the diversification of gas supplies for This will strengthen our energy security and lead to more competitive prices for consumers.

The MoC provides a framework to cooperate in facilitating flexibility in LNG contracts, abolition of Destination Restriction Clause and also explore possibilities of cooperation in establishing reliable LNG spot price indices reflecting true LNG demand and supply.

Background:

and are major consumers of energy in the world. In the LNG sector, is the world's largest importer and is the 4th largest importer. Under the Japan-Energy Partnership Initiative signed in January 2016, the two sides had agreed to work together in promoting well-functioning energy markets and affirmed to promote a transparent and diversified Liquefied Natural Gas (LNG) market through the relaxation of Destination Restriction Clause.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, October 11 2017. 00:20 IST