Updated By: LatestGKGS Desk
India and Japan: Union Cabinet approves Memorandum of Cooperation (MoU)
Union Cabinet approves the signing of the Memorandum of Cooperation (MoU) between India and Japan
The Union Cabinet has approved the signing of the Memorandum of Cooperation (MoU) between India and Japan for establishing a liquid, flexible and global Liquefied Natural Gas (LNG) market.
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 4 the Largest importer.
Under the Japan-India agency partnership Initiative, both the countries agreed to work together in promoting well-functioning energy market and affirmed to promote a transparent and diversified Liquefied Natural Gas market.
Cabinet has approved the signing of the Memorandum of Cooperation (MoU)'s objective
* The Memorandum of Cooperation (MoU) will promote bilateral relationship between India and Japan in the energy sector. It will contribute to the diversification of gas supplies for India.
* The Memorandum of Cooperation (MoU) will strengthen the energy security and lead to more competitive prices for consumers.
* It will provide a framework to cooperation in facilitating flexibility in LNG contracts and the abolition of destination Restriction Clause.
* MoU will also explore possibilities of cooperation in establishing reliable LNG spot price indices reflecting true LNG demand and supply.
