Union Cabinet approves signing of the MoC between India and Japan on establishing LNG Market

Under the Japan-India Energy Partnership Initiative, both the countries agreed to work together in promoting well-functioning energy markets and affirmed to promote a transparent and diversified Liquefied Natural Gas (LNG) market.

Created On: Oct 12, 2017 14:59 ISTModified On: Oct 12, 2017 15:02 IST

The Union Cabinet on 11 October 2017 approved the signing of the Memorandum of Cooperation (MoC) between India and Japan for establishing a liquid, flexible and global Liquefied Natural Gas (LNG) Market.

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Highlights of the MoC
• The MoC will promote bilateral relationship between India and Japan in the energy sector.
• It will contribute to the diversification of gas supplies for India.
• It will strengthen the energy security and lead to more competitive prices for consumers.
• It will provide a framework to cooperate in facilitating flexibility in LNG contracts and abolition of Destination Restriction Clause.
• It will also explore possibilities of cooperation in establishing reliable LNG spot price indices reflecting true LNG demand and supply.

Background
India and Japan are major consumers of energy in the world. In the LNG sector, Japan is the world's largest importer and India is the 4th largest importer.

Under the Japan-India Energy Partnership Initiative, both the countries agreed to work together in promoting well-functioning energy markets and affirmed to promote a transparent and diversified Liquefied Natural Gas (LNG) market.

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एग्जाम की तैयारी के लिए ऐप पर वीकली टेस्ट लें और दूसरों के साथ प्रतिस्पर्धा करें। डाउनलोड करें करेंट अफेयर्स ऐप

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