TOKYO, April 6 (Reuters) - JERA Co said on Thursday that it had struck a memorandum of understanding with Dubai Supply Authority (DUSUP) on cooperation in the liquefied natural gas (LNG) business.
JERA, the world’s top LNG importer, has been forming alliances with other big LNG buyers to secure more flexible supply contracts in a move which shifts power to importers from producers as oversupply grows.
JERA, a fuel joint venture between Tokyo Electric Power and Chubu Electric Power, said it and DUSUP would discuss opportunities for mutual collaboration in the LNG business, including joint procurement of LNG and opportunities for cooperation related to LNG shipping and storage capacity.
DUSUP procures natural gas through national and international pipelines and through the development of an LNG import facility called a floating storage regasification unit (FSRU) in Jebel Ali.
“JERA believes that strengthening its relationship with DUSUP will contribute to expanding business opportunities for both companies,” JERA said in a statement.
The Tokyo-based firm last month signed a similar agreement with two of the world’s biggest LNG buyers, Korea Gas Corp (KOGAS) and China National Offshore Oil Corp (CNOOC) to exchange information and cooperate in the joint procurement of LNG. (Reporting by Osamu Tsukimori. Editing by Jane Merriman)