Japan Gas Lobby Urges Government to Help With Open Contracts [Yahoo! Finance Canada]
TOKYO GAS CO LTD UNSP/ADR (TKGSY)
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Source: Yahoo! Finance Canada
need the government to help negotiate better terms, according to the head of an industry lobby group. Most Read from Bloomberg So-called destination clauses that limit the on-selling of shipments make it harder for companies to commit to decades-long contracts considering uncertainty about future demand, Japan Gas Association Chairman Takashi Uchida said in an interview on Monday. Such restrictions are common in contracts with Qatar's state-owned producer, among others, who don't want resold gas damping demand in other markets. “We've been asking the government to help with making contracts destination clause-free,” said Uchida, who is also chairman of Tokyo Gas Co. The private sector alone can't secure flexible agreements, he said. Japanese utilities have been reluctant to sign new contracts with Qatar, which has an ambitious plan to ramp up LNG production and ensure it remains a major force in the global market. Recent buyers from the Middle Eastern producer — including Tota
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