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Related Articles
EU faces tough task following Japan LNG model
The bloc may find it very difficult to replicate Japan’s approach due to fundamental differences in policy and the markets
Australia’s LNG flashpoint
Scapegoating foreign buyers will not solve country’s gas shortages
Cheap gas key to unlocking new markets
Weaning poorer regions off coal means gas needs to be abundant and competitive longer term
LNG faces promises and perils ahead
LNG has opportunities to expand in established markets and access new ones, but the sector’s outlook is also fraught with uncertainties, from political and regulatory difficulties to chokepoints, project delays and cost overruns, says the IGU
Do not underplay China’s long-term gas growth narrative
A subdued market amid global trade tensions is just an aberration in gas’ upward trajectory
Woodside adopts considered approach to Louisiana LNG
CEO Meg O’Neill explains the virtue of patience in offtake discussions amid tariff tensions
Europe’s hard choices on gas security
EU half measures over storage regulation, geopolitical risks to ending Russian gas, power outage questions and China’s LNG resale leverage make for a challenging path ahead.
China’s critical gas position
China will play a huge role in driving gas demand, with its Qatar partnership crucial to this growth amid global structural challenges
Gas may be bridge fuel for centuries
Energy majors argue transition debate has started to factor in the complexities of demand shifts and the wider role for gas
China’s pragmatic coal-to-gas strategy
A cautious approach to coal-to-gas switching offers lessons to others who are looking to balance cost with cleaner energy
LNG Japan China Taiwan South Korea
Gordon Bennett
21 September 2020
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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.

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