Japanese competition authority releases LNG market study, and considers compliance of destination and resale restrictions and take-or-pay clauses with Antimonopoly Act

On 28 June 2017, the Japanese competition authority released its report on the LNG market after conducting a one-year-long market study.

The Japan Fair Trade Commission (“JFTC”) found that destination clauses may be anti-competitive in some circumstances, that they prevent LNG buyers from freely re-selling their excess supply of LNG, and that these clauses may violate the country’s anti-monopoly law. The report also briefly analyses the circumstances in which take-or-pay clauses may be anti-competitive. 

Read more