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METI and the European Commission Signed a Memorandum of Cooperation on Promoting and Establishing a Liquid, Flexible and Transparent Global Liquefied Natural Gas Market To fortify Japan-EU collaboration to establish energy security

On July 11, 2017 (local time), Mr. Hiroshige Seko, Minister of Economy, Trade and Industry, and H.E. Mr. Miguel Arias Cañete, European Commissioner for Climate Action and Energy, signed a Memorandum of Cooperation on Promoting and Establishing a Liquid, Flexible and Transparent Global Liquefied Natural Gas Market.

1. Background

Japan and the European Union account for nearly half of all worldwide LNG imports. From the viewpoint of establishing energy security and securing competitiveness, The European Commission released the EU Strategy for Liquefied Natural Gas and Gas Storage in 2016, and the Ministry of Economy, Trade and Industry (METI) released its Strategy for LNG Market Development in 2016, to secure stable and inexpensive energy supply through the establishment of a highly liquid LNG market. Strengthening Japan-EU cooperation is expected to promote the establishment of a highly flexible and liquid global LNG market.

2. Key points of the MOC

Under the MOC, Japan and the EU will aim to conduct joint activities to establish a highly liquid, flexible and transparent LNG market in a manner open to all LNG consumers and producers, and to this end, they will share knowledge to improve the functioning of the global LNG market and conduct initiatives for raising public awareness of best practices. Specifically, the MOC covers the following fields:

  1. Accelerating efforts in facilitating more flexible LNG sales contracts
  2. Conveying highly transparent price indices
  3. Strengthening Japan-EU collaboration in the field of energy at international conventions or international organizations, in particular, concerning actions for emergency response in supply disruptions

Through these efforts, Japan will strive to secure highly competitive LNG supply and improve robustness of international LNG markets and Japan’s emergency response.

Appendix

Release date

July 11, 2017

Division in Charge

Petroleum and Natural Gas Division, Natural Resources and Fuel Department, Agency for Natural Resources and Energy

Related website

Ministry of Economy, Trade and Industry1-3-1 Kasumigaseki, Chiyoda-ku, Tokyo 100-8901, Japan Tel: +81-(0)3-3501-1511
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