The Japanese government would begin the evaluation of a joint procurement plan for liquefied natural gas (LNG) next month. The program was said to help link both domestic and foreign purchasers of LNG in an effort to bring down costs. The joint procurement plan would reportedly give buyers more bargaining power against LNG suppliers. Japan is the largest importer of LNG all over the world.
Ministry of Economy, Trade and Industry Director for the Oil and Natural Gas Division Ryo Minami told reporters that Japan would need to iron out the details of the plan. "By combining buyers from Japan and other countries, we can increase the volume needed to gain bargaining power. We will conduct hearings for local utilities and gas companies as well as foreign companies and plan to complete details for the joint-purchasing program soon," he said.
Trade and Industry Minister Toshimitsu Motegi said LNG is four times more expensive in Japan than in the US. He added that this is the reason why lowering the cost has become an important issue for the country.
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