Asia's LNG market set for shake-up
With abundant supplies, region's buyers are demanding better terms; Korea Gas Corp's arbitration move may set off a wave of contractual disputes
Singapore
A MOVE by Korea Gas Corp (Kogas) to seek arbitration over the terms of a liquefied natural gas (LNG) contract with Australian exporters could herald a shake-up of the region's LNG market as other buyers follow suit, analysts and experts said.
Asian buyers have so far resisted taking on producers over pricing or what they see as restrictive clauses in long-term contracts, some stretching out for decades, but abundant supplies look to be driving a change of heart.
Changes to clauses, particularly on pricing and those prohibiting buyers from on-selling cargoes, could lead to a surge in LNG trading, echoing the European experience after a wave of arbitration c…
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