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
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