The rate at which spot cargoes grow as a proportion of the overall market may be slowing
LNG trade trends defy assumed truths
The inexorable rise of spot trading may be losing momentum as the market finds new ways to balance
LNG industry participants and analysts are re-evaluating fundamental aspects of the business in response to the at-times startling events and trends of the past 15 months. In particular, they are challenging received wisdom on how spot trading and market balancing will evolve. One example is questioning whether LNG trade is on track for ever-greater commoditisation, with the ready availability of spot cargoes taking an ever-increasing share of the market from term contracts. Price volatility and security of supply failures in several markets—notably Japan and Pakistan—appear to be changing mindsets around the most appropriate balance of spot and term contracting. c.30pc – Share of spot
Also in this section
10 December 2024
Sector at economic and strategic crossroads, but clear path ahead for midstream additions
30 November 2024
Decades of turmoil have left Iraq’s vast energy potential underutilised, but renewed investment and strategic reforms are transforming it into a key player in the region
29 November 2024
The country's fifth and sixth oil and gas bid rounds have attracted a range of new players with gas as well as oil ambitions—and there’s a seismic shift in the contracting process
28 November 2024
Iraq is charting a new path for its indigenous resources and its youth, hoping to electrify the future with a mix of reforms and modernisation to fuel growth
