Related Articles
LNG Japan China Taiwan South Korea
Gordon Bennett
21 September 2020
Forward article link
Share PDF with colleagues

JKM globalises the gas market

In Asia, an increasingly liberalised LNG market has enabled the region to mitigate a lack of interconnected pipeline infrastructure

LNG liberalisation—the move from a procurement structure to one that is market-based—has globalised the natural gas market, creating a virtual pipeline between continents. On the supply side, the shale gas revolution turned the US into a net gas exporter, while independent terminal developer Cheniere’s pioneering business model of selling LNG on a free-on-board (Fob) basis indexed to a gas benchmark is widely credited as a catalyst for the change in market structure. For LNG buyers, the unwinding of long-term legacy LNG contracts and access to US gas that held, initially at least, a large discount to price levels in the demand centres of Europe and Asia further precipitated this development

Comments

Comments

{{ error }}
{{ comment.comment.Name }} • {{ comment.timeAgo }}
{{ comment.comment.Text }}
Also in this section
Letter from Singapore: Exploring Southeast Asia’s upstream mix
Opinion
20 September 2021
The region’s upstream is not just a space for NOCs
Trinidad scrambles to prevent gas nosedive
17 September 2021
The country’s production has been freefalling for years, but expected startups will not be enough to avert further long-term losses
Nigerian reforms leave lingering doubts
16 September 2021
Questions remain over some specifics of the recently passed Petroleum Industry Bill and whether the reforms will be enough to jumpstart the country’s stalled upstream
Sign Up For Our Newsletter
Project Data
Maps
PE Store
Social Links
Social Feeds
Featured Video