Japan, India Seek Cheaper Lng Procurement Costs, Touch On 'asian Premium'

Japan, India seek cheaper LNG procurement costs, touch on 'Asian premium'Japan and India on Monday called for "transparent and globally competitive" price formation in the procurement of liquefied natural gas in the Asia-Pacific market, citing price differentials between the region and Europe and North America known as "the Asian premium."

Noting there are "no reliable price indices that accurately reflect the LNG supply and demand balance" in Asia, the two major LNG importing countries said they will "work together towards the development of a market environment that would enable effective, stable and globally competitive LNG procurement," a move that would lead to a reduction in their LNG procurement costs.

"It is essential to review current business practices that would hinder market liquidity," Japan's Economy, Trade and Industry Minister Toshimitsu Motegi and India's Petroleum and Natural Gas Minister M. Veerappa Moily said in a joint statement issued after a meeting in Tokyo.