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Supply overhang can last longer than projected-III: The market will get more choppy
Apr 11: As the global LNG business becomes more commoditized, very interesting trends are expected to emerge
8An interactive marketplace where same players are both suppliers and buyers is likely to emerge
8There will be an emergence of end-to-end solution providers
8Looking for markets, LNG suppliers may end up selling not just LNG but energy solution to local governments.
8Reaching almost 30 percent of trade, trading activities will become very important too, and this would  require suppliers as well as some buyers to develop trading capabilities to service contracts while protecting and potentially enhancing value for themselves (e.g. an understanding of hedgeable instruments and derivative markets or of new derivative instruments such as location swaps).
8Shorter terms contracts reduce the risk of over-committing to purchases with uncertain demand. Reloading is an option, given more flexible LNG markets, but exposes the reseller to the risk of mismatches between long-term and spot prices. A bundle of contracts with different suppliers, periods and pricing bases can help, as can a greater role for intermediary trading companies who can manage demand risk across their portfolio.
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