Asian LNG market embraces short-term contracts
Buyers are becoming less keen on being locked in for the long term amid a rapidly evolving market and rising demand
Asian LNG buyers—including a new crop of importers from China—are increasingly demanding shorter-term contracts that span just several years, but there is still a time and place for long-term contracting in the market despite increased spot liquidity, executives said at a June industry conference in Shanghai.
“In the earliest stage of the LNG market, we saw more 20-25-year long-term contracts, but now requirements have changed, and some are saying they prefer three-to-five-year contracts,” Ma Shenyuan, a senior adviser to US LNG project developer Tellurian, told the China LNG & Gas International Exhibition & Summit. “Of course, there are still some Chinese buyers requesting five-to-
Welcome to the PE Media Network
In 2021 Petroleum Economist is joined by Hydrogen Economist and Transition Economist to form the only genuinely comprehensive intelligence service covering the global energy industry
Want to read more?
Please choose from one of the following options: