Cabinet nod for natural gas cargo-swap deal with Japan
Why is it in the news?
It could reduce India’s logistical costs for gas import
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The Cabinet approved a cargo-swapping arrangement with Japan as part of a broader bilateral pact to create a gas exchange that could reduce India’s logistical costs for natural gas import.
As the world’s largest importer of gas, Japan has pacts for supply with Qatar.
India has similar pacts with Australia.
As part of the gas exchange, India has a provision that will allow the swapping of these gas contracts which will save [on] transport costs.
So, India can get gas from Qatar instead of Japan, and they can source India's quantum from Australia.
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