JBIC open to support setting up LNG terminals in India

The Japan Bank for International Cooperation (JBIC) is open to supporting the setting up of liquefied natural gas (LNG) terminals in India, its visiting Governor Akira Kondoh has said.

“We (JBIC) have started approaching various government departments in India, extending our support for setting up of LNG terminal infrastructure,” Kondoh told BusinessLine in an interview here on Thursday.

Kondoh said Japan ranked as the world’s largest importer of LNG and that JBIC had gained expertise in supporting the setting up of LNG terminals (shale gas) in the US. India is the fourth biggest LNG importer in the world.

Asked if any investment proposal for supporting the setting up a LNG terminal in India was before JBIC, Kondoh replied in the negative.

“It’s early days. We are at a preliminary stage. Our mission is to support Japanese companies investing overseas and we could support creation of LNG terminals in India both on the capital and technology front”, he said.

Kondoh said India had started to enter into LNG import contracts with the US.

JBIC’s remarks expressing interest to support the setting up of LNG terminals (re-gasification) in India is significant as it comes close on the heels of India and Japan signing a Memorandum of Cooperation (MoC) for establishing a liquid, flexible and global LNG market.

The MoC was signed during Petroleum Minister Dharmendra Pradhan’s visit to Japan in October this year. The MoC provides a framework to co-operate in facilitating flexibility in LNG contracts, abolition of Destination Restriction clause and also explore possibilities of cooperation in establishing reliable spot price indices reflecting the LNG demand and supply.

Kondoh said he was visiting New Delhi to address a joint conference by JBIC and Exim Bank of India and also to celebrate JBIC moving to a new office at Aerocity in the National Capital Region..