Gas glut upends global trade flows as buyers find leverage
India is encouraging importers to rework long-term accords to better align costs with spot market prices
Tokyo
THE market for liquefied natural gas (LNG) is about to attract more players and more trading as new supply from the US and Australia strengthens buyers' bargaining power.
Historically, LNG has been sold on long-term contracts that guaranteed buyers supply and helped producers finance liquefaction plants at a time when less of the product was shipped. Now, a gas glut is causing LNG importing countries to support renegotiating existing deals that can run 20 years or more while suppliers offer more flexible terms to lock up customers spoiled for choice.
India already is encouraging importers to rework long-term accords to better align costs with spot market prices. Japan, the world's largest LNG importer, may soon join them. That country's Fair Trade Commission is in the process of probing resale restrictions in longer de…
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Energy & Commodities
Oil rises as dollar slips, focus shifts to economic data
California to wrap up ExxonMobil plastics probe ‘in weeks’, AG says
Gold edges higher; hovers near one-week low on tempered Middle East fears
Why has gold’s inverse relationship with the US dollar reversed?
Oil futures fall as fears of a wider Middle East war fade
Malaysia’s Sapura Energy to sell stake in SapuraOMV to TotalEnergies for US$705 million