Era of flexibility
Buyers are taking control of an oversupplied market and they want shorter contracts and freedom to sell what they don't use
East Asia's liquefied natural gas market is undergoing an inexorable shift as buyers push for more equitable contract terms and an impending supply surplus boosts trading and liquidity. Japan, South Korea, China and Taiwan between them account for 60% of all global LNG imports, so the consequences will be felt across the world's projects and operators. "The industry is moving in the direction of a more flexible and transparent market," says Hiroshi Hashimoto, senior analyst of the gas group at the Institute of Energy Economics, Japan. In August, South Korea joined Japan in probing contractual constraints for reselling LNG cargoes under destination clauses in Free on Board (FOB) contracts. Ch
Also in this section
15 May 2025
Financial problems, lack of exploration success and political dogma cause uncertainty across much of the region
14 May 2025
The invisible hand of the market has seen increasing transparency but much more needs to be done to build a better understanding
13 May 2025
A fall in Venezuelan output drives overall production lower, as Saudi Arabia starts to slowly bring more crude to the market
12 May 2025
With the gas industry’s staunchest advocates and opponents taking brutal blows, the sector looks like treading a path of insipid indifference
