Changing LNG markets and contracts
摘要
Liquefied natural gas (LNG) markets have changed dramatically in the last few years. As a result, LNG contracts have become looser and more flexible. Although increased emphasis is now placed on obligation to pay for cargos and on credit security, price indexation provisions are also evolving. Increasingly, LNG contracts have prices escalated with gas hub prices. In Asia, some newer contracts are using LNG spot prices. Historically, price reviews, with binding arbitration in the event of failure to agree, were rare in Asian LNG contracts. However, the growth in competition in such markets means they will become more common. In future, gas prices in the Far East and Europe may converge somewhat, as Europe starts to rely more on LNG and Asian markets become more competitive. North America may be an exception to this trend.