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Japan, EU ink pact on LNG resale

Jiji Press BRUSSELS (Jiji Press) — Japan and the European Union exchanged a memorandum of understanding Tuesday on their cooperation for removing terms restricting the resale of liquefied natural gas from LNG import contracts.

The cooperation deal, also aimed at making the LNG market transparent, was signed in Brussels by Japanese trade minister Hiroshige Seko and Miguel Arias Canete, European commissioner for energy.

Japan, the largest importer of LNG in the world, is not allowed to resell it under contracts with exporters, such as Middle Eastern nations, even if it sees surplus LNG stock in the future.

By teaming up with the EU, which is looking to diversify energy sources and keenly interested in LNG, Japan intends to strengthen the buyers’ position so they can correct contract conditions in favor of the sellers, people familiar with the matter said.

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