Book LNG now or risk shortages later, says Shell

With Asian and European buyers prepared to pay high prices for LNG under long-term contracts, building a receiving terminal is no guarantee of receiving supplies in the future, says Linda Cook, Shell's executive director for gas and power

Liquefied natural gas (LNG) buyers that fail to lock in supplies under long-term contracts risk ending up with nothing, says Linda Cook, Shell's executive director for gas and power. LNG buyers in Asia and Europe are starting to "mop up" – under long-term contract – volumes that had previously been considered flexible, says Cook. For example, Shell has recently struck deals with China and Dubai for off-take from the under-construction Qatargas 4 train – volumes that had originally been earmarked for North America and Europe. "Countries or customers that are unwilling to secure supplies under long-term contract are running the risk that the gas won't be there when they need it. Those that thi