Japanese JERA announced that has entered into a Memorandum of Understanding (MOU) with Korea Gas Corporation (KOGAS) and CNOOC Gas and Power Trading & Marketing Limited (CNOOC), in order to cooperate in the LNG business.
Under this MOU, JERA, KOGAS and CNOOC will discuss opportunities for mutual collaboration in the LNG business. Specific areas for discussion include joint procurement of LNG, joint participation in upstream projects, and cooperation relating to LNG shipping and storage.
The company explained that 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. It also expects the MOU to provide a platform for sharing views on issues related to traditional LNG business practices, such as destination restrictions and will help in investigating ways to gain even greater flexibility in procurement.
Source & Image credit: JERA