Co-operation of JERA, Kogas and CNOOC to Increase LNG Business

The joint participation in the upstream operations for LNG is likely to increase the LNG market.

Japan: JERA Co., Inc., Korea Gas Corporation (Kogas), and China National Offshore Oil Corporation (CNOOC) signed an MOU to increase the LNG business by collaborating with each other. The companies are likely to carry forward operations for the procurement of LNG and to perform various activities in the upstream sector collectively. The MOU will allow the companies to work with high flexibility by sharing their traditional market views with each other. Jera had already signed MOUs for the co-operation in LNG business with Singapore company, Pavilion Gas and Electricity Generating Authority of Thailand.

TechSci Research depicts that the collaboration among JERA Co., Inc., Korea Gas Corporation (Kogas), and China National Offshore Oil Corporation (CNOOC) would promote the development activities in the field of LNG exploration and production. Growing focus on expansion of gas pipeline infrastructure, rising demand for natural gas from downstream sectors along with declining LNG prices would boost demand for LNG across the globe. Increasing focus on development of adequate support infrastructure in various developing as well as developed economies is expected to boost LNG demand in the coming years.

According to released report of TechSci Research “Global LNG Market Demand & Supply Analysis, By Region, By Country, By LNG Terminal, Competition Forecast and Opportunities, 2011-2025”, global LNG supply market is forecast to exhibit a CAGR of over 5% during 2016-2025, on account of rising demand for cleaner fuels; oversupply of LNG due to liquefaction capacity additions in Australia, US and Papua New Guinea; and declining prices of LNG over the last few years. In 2015, global LNG export market was dominated by Qatar and Australia, due to huge natural gas reserves and large liquefication capacities in these countries. Increase in spot market purchase is expected to keep LNG prices under check in Asia-Pacific and Europe.