That’s Japan — home to some of the world’s biggest buyers of liquefied natural gas (LNG), including the world’s #1 consuming firm, Jera. And authorities here aren’t happy about the way LNG contracts have been run up until now. Here’s the crux: historically, many LNG purchase agreements included so-called “destination clauses”. Stipulating that LNG buyers had to use the supply in a single, stated export destination. That meant that LNG purchasers in Japan had to use their cargos in Japan. Even if it turned out they had too much supply, they couldn’t re-sell their LNG on the global market to reduce the surplus. But the Japanese Fair Trade Commission said Wednesday that won’t fly anymore. With the trade body saying destination clauses probably violate anti-monopoly rules — and therefore will be outlawed in any future purchasing contracts for Japanese buyers. Japanese firms are now bound by this ruling. Meaning […]