Pricing up and down
A trend towards increased spot sales and more flexible contracts is keeping the global LNG industry on its toes
The rollercoaster ride in oil and liquefied natural gas prices since 2014 has shaken up previously staid LNG pricing mechanisms and contract terms. Buyer aggressiveness; the emergence of international trading companies as significant market participants; and the growing US role in LNG supply have all affected contract structures. But market participants say the evolution towards a world price for traded gas still has some way to run. Japan is the world's largest single LNG destination and the lynchpin of the Asia-Pacific LNG market, accounting for 73% of world imports, according to the International Group of LNG Importers. Since 2014, the spot price of LNG delivered to Japan has swung betwee
Also in this section
29 April 2026
The UAE’s exit from the alliance marks a decisive step towards a world in which oil markets are shaped less by collective management and more by national strategy
29 April 2026
Trafigura’s $1b prepayment agreement confirms African resource holders’ renewed interest in oil-backed financing deals as they look to capitalise on high oil prices
29 April 2026
The UAE’s departure from the oil producers’ group was a surprise to many, but the move can be traced back to a single point five years ago
28 April 2026
Oil traders warning of $200/bl oil are wrong, and the market should be wary of proclamations that the impact of the oil shortage has only begun to be felt and a that a ‘harsh adjustment’ is coming—even for industrialised nations
