Insight
LNG contracting: why despite high spot prices it's still a buyer's market for long-term volumes
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
The LNG contract market and LNG spot market are travelling in opposite directions. Spot prices presently average just over US$10/mmbtu for June delivery into North East Asia, their highest at this point in the summer for over six years, while oil indexed LNG sales prices have fallen to their lowest level in over ten years. Most legacy buyers in Asia are presently out of the market for new long term volumes and focussing on increasing flexibility in their LNG procurement portfolio. There are some buyers looking for term contracts, but currently there is more volume available for sale via long term contracts than there are buyers, leaving those buyers which are in the market spoilt for choice. Will this buyers’ market for long-term LNG continue? At the moment it seems so - read our report to find out why.
Table of contents
- Executive Summary
- Introduction
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What do Asian buyers want?
- 1) Established markets – legacy buyers vs new entrants
- 2) Emerging Markets
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What uncontracted supply is available?
- 1) Rising supply availability from legacy projects
- 2) Qatar – Almost 70 mmtpa of volumes available to market by 2030
- 3) Portfolio players – ramp-up of new supply leaves some heavily uncontracted
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Contract market implications – why it remains a buyers’ market, for now
- Matching buyers with sellers
- New supply looking for contracts are still challenged
- Is there a window of opportunity for US LNG?
- If Russia and Qatar keep investing in new supply it could sustain the buyers’ market
Tables and charts
This report includes the following images and tables:
- 1. Historic: Asian LNG spot and contract prices (Nominal)
- 2. Forecast: Asian LNG spot and contract prices (Real)
- 3. Asia contracted vs total demand
- 4. Uncontracted demand by region
- 5. Uncontracted supply by status
- 6. Uncontracted supply by plant
What's included
This report contains:
