Japan's Chubu in deal with India's GAIL to consider joint LNG procurement

March 25, 2014

Japan's Chubu Electric Power said on March it has signed a deal with India's GAIL to consider cooperation in joint procurement of liquefied natural gas (LNG), as Asian buyers look for stable and lower prices of the fuel, Reuters has reported

Rising demand for LNG in Asia, already the top destination for the fuel, has helped push its price to near-record levels and now buyers such as India, Japan and South Korea are trying to find ways to cut their soaring gas import bills.

The two firms had been considering a preliminary deal on joint purchases since January. India, Japan and other Asian countries that together import 70 percent of the world's LNG met in December to discuss forming a buyers' club to get a better deal from suppliers.

Copyright: Reuters, 2014