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Indian LNG players not moving fast enough-I: Global changes can upset the apple cart
May 11:
The LNG industry continue to evolve rapidly as over supply continues to be the dominating theme. Greater buyer power, an excess of uncontracted LNG, a greater diversity of players and more flexible import infrastructure is driving the change.
Here are some of the important features:
8Rising LNG supply will weigh on spot LNG prices, potentially widening the discount to long-term, oil-linked contracts.
8Suppliers are coming under pressure to remove destination clauses, which forbids reselling to other locations. Removal of these clauses frees up buyers to resell when they are overcommitted or simply when a better trading opportunity presents.
8A flurry of unrestricted outbound cargoes from Japan that may push down LNG prices for as long as 5 years. About 80 percent of long-term LNG supply contracts between major Japanese and South Korean buyers and suppliers are estimated to include destination restriction clauses.
Click on Reports for more
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Here are some of the important features:
8Rising LNG supply will weigh on spot LNG prices, potentially widening the discount to long-term, oil-linked contracts.
8Suppliers are coming under pressure to remove destination clauses, which forbids reselling to other locations. Removal of these clauses frees up buyers to resell when they are overcommitted or simply when a better trading opportunity presents.
8A flurry of unrestricted outbound cargoes from Japan that may push down LNG prices for as long as 5 years. About 80 percent of long-term LNG supply contracts between major Japanese and South Korean buyers and suppliers are estimated to include destination restriction clauses.
Click on Reports for more
