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
6 February 2026
The long close relationship between key supplier Qatar and pivotal buyer Japan becomes even deeper following new landmark deal
6 February 2026
Partnerships across the LNG value chain have evolved over time, growing in both complexity and importance, according to panellists at LNG2026
6 February 2026
Nigeria's mega-refinery is still trying to solve many challenges, all while its owner talks up expansion
5 February 2026
While broadly supportive of EU efforts to tackle methane emissions, representatives of the gas industry warn it could deter supply contracting if timelines and compliance requirements are not made more pragmatic
