|Subject||Asian Gas Buyers Trying To Break Out Of Rigid Market Structure|
Asian gas and power companies are starting to pair up for joint purchases of LNG after more ambitious efforts to form a regional group to win lower prices and less rigid contracts have stalled.
Japan, India, South Korea and other Asian gas importers - who take about 70 percent of global liquefied natural gas (LNG) exports - have been trying to form a buyers' club to use their dominant market presence to delink contract prices from oil and allow importing companies to resell any excess cargoes.
But after two meetings to discuss a regional buyers' group last year, a third was cancelled in February and no others have been scheduled. The issue was also not on the official agenda last week at a gas industry conference in South Korea.
Tired of a lack of progress on the government-led initiative, a number of firms - including Japanese power companies and state gas utilities in India and South Korea - are looking at other ways to buy LNG collectively, with the gain of any advantage becoming more critical as import costs soar.
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