The rise of the LNG trading house

Shifts in the market are bringing commodities players into the business of selling seaborn gas

Low spot prices and buyer power in Asia-Pacific are threatening established liquefied natural gas exporters' business model-but they are proving a boon for independent traders, who are shaking up a captured market that has long lagged the Atlantic Basin in terms of flexibility, liquidity and transparency. Expectations that LNG demand-and prices-will rebound in the coming three to five years are providing a strong impetus. The emergence of new types of buyers with higher risk profiles and a wish from established buyers for more flexibility is also providing an opening for creative sales-and-purchase agreements. Traders already positioned in Asian LNG include established commodities players, s