BusinessLine: India-Japan to Push for Removal of Destination Clause in LNG Contracts

India and Japan have agreed to work together to promote a transparent and diversified LNG market by pushing for the relaxation of the destination clause in long-term supply contracts for the fuel.

This was decided at the 8th India-Japan Energy Dialogue being held in Tokyo. India is being represented by Piyush Goyal, Minister of State (Independent Charge) Power, Coal and New & Renewable Energy, while Japan's representative to the dialogue is Motoo Hayashi, Minister of Economy, Trade and Industry.

Destination clauses in long-term LNG contracts restrict where the shipments of gas can be unloaded and prevent the buyers from selling excess cargoes.

Japan, in particular, has been vocal about the removal of the destination clause. MORE