The world's biggest liquefied natural gas (LNG) buyers, all in Asia, are clubbing together to secure more flexible supply contracts in a move which shifts power to importers from producers as oversupply grows, reported Reuters.

Japan’s Jera, the world’s largest corporate liquefied natural gas (LNG) buyer, said it has signed a MoU in mid-March with South Korea’s Kogas and China’s CNOOC Gas and Power Trading & Marketing, to cooperate in the LNG business and to secure more flexible contracts.

As per the deal, the trio would discuss opportunities for mutual collaboration in joint procurement of LNG, joint participation in upstream projects, and cooperation relating to LNG shipping and storage, Jera said in its statement.

Japan, South Korea and China are the world’s three largest LNG importing nations and account for more than 50 per cent of the import market share.

As per the new agreement, the buyers aim to extract concessions from producers that would give them supply flexibility, such as having the right to re-sell imports to third parties, something they are not allowed to do currently under so-called destination restrictions.

LNG buyers have been for years urging the need for more flexible LNG contracts, especially when it comes to destination clauses that restrict them from reselling or swapping cargoes.

This alliance is likely to put pressure on exporters such as Qatar, Australia and Malaysia, it added.