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ARTICLE · 17 JULY 2017

Japan LNG Import Contracts – The JFTC Reports

The Japanese Fair Trade Commission (JFTC) on June 28, 2017 issued its much-anticipated report into the state of the market for contracted long term LNG supplies into Japan‎ (available here).

JapanEnergy and Natural Resources

The Japanese Fair Trade Commission (JFTC) on June 28, 2017 issued its much-anticipated report into the state of the market for contracted long term LNG supplies into Japan‎ (available here). The report made a number of key observations.

日本の公正取引委員会(「公取」)は、平成29年6月28日、日本における長期のLNG(液化天然ガス)供給契約にかかる取引実態に関して待望の調査報告書(こちらで閲覧できます。)を公表しました。本報告書には、多くの重要な所見が含まれています。

The following contract provisions and behaviours could, prima facie, be in violation of the Antimonopoly Act (Unfair Trade Practices: Trading on Restrictive Terms) because of the potential for foreclosure of the Japanese gas market:

以下の契約条項や行為は、日本のガス市場に閉鎖効果を生じさせるおそれがあることから、原則として、独占禁止法上問題(不公正な取引方法:拘束条件付取引)となるおそれがあります。

Destination clauses and diversion conditions - with a recognition that this will particularly be the case for fixed-term FOB contracts; for DES contracts a destination clause intended to define a delivery point might not be problematic, nor would be the necessity for a seller’s consent to

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