The Japanese government has said that Japan and India have launched a joint project to research pricing structures in the Liquefied Natural Petroleum (LNP) markets on October 10, 2012. The new project has been launched after complaints that the energy starving Asia is paying more than its fair share as compared to countries in other continents. LNG, is gas which is liquefied on a temporary basis, making it easier for storage.
Japan is considered to be the world’s top importer of Liquefied Natural Gas. It has been noticed that Asian buyers pay far more than those in North America due to the price index which is linked to oil in the continent.
The present pricing structures in the LNG market dictates that the pricing in North America is determined on the basis of supply and demand. Yukio Edano, the industry minister of Japan and Montek Singh Ahluwalia, the deputy chairman of India’s Planning Commission signed the agreement in Tokyo.
Japan, who is now striving for energy, is hunting for cheaper energy as the energy situation in the country has grown worse due to the March 11, 2011 disaster, caused by earthquake and tsunami at the Fukushima nuclear plant. On the other hand, the growing economy of India has a demand for more energy.