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LNG Derivatives Market Maturing

lng-pricing
Cheniere & CME Group are developing a physically settled LNG futures contract, delivering at Sabine Pass. This will add to existing SGX & ICE LNG futures contracts and some bilaterally traded derivatives. Liquidity is embryonic but starting to grow. 4 factors driving growth: Spot liquidity: Derivatives require a liquid spot reference price. This is being facilitated by growth in spot cargo...

European LNG Imports Slump in H1 2018

European net LNG imports in H1 2018 did not sustain the growth momentum which was seen in 2017 (nearly 5% Y-o-Y growth in H1 2017) as total LNG net imports fell by 5% (-1.21 MT YoY) to reach 21.2 MT. This trend was mainly the result of higher re-exports, which went up 1.1 MT YoY, and strong declines in...

Global LNG Trade Continues Strong Momentum Q1 2018

The global LNG trade in Q1 2018 sustained the growth momentum which was seen in 2017 as total LNG net imports grew by 9.6% (+6.89 MT YoY) to reach 78.7 MT. This strong growth was bolstered mainly by China (+4.83 MT YoY) and South Korea (+1.60 MT YoY) in North East Asia as well as India (+ 1.36 MT YoY)...

Next LNG Supply Wave: the 5 Major Players

The current wave of new LNG supply consists of more than 150 mtpa of committed liquefaction projections coming online between 2015 and 2022. But considerable uncertainty remains as to the size, source and timing of the next wave. The authors review the 5 countries likely to dominate the provisions of additional liquefaction capacity to meet LNG supply growth across Asia,...

Asian Spot LNG Prices on the Rise

Asian LNG spot prices
Source: Timera Energy Price levels: Spot prices for delivery in Nth Asia are rapidly rising towards 10 $/mmbtu. This has opened up a 2.5 $/mmbtu gap to TTF (exceeding variable transport costs). China key: Chinese buyers are driving prices higher, given the ongoing policy push to gas, strong industrial demand and building of inventories ahead of winter. Other demand: Competition for spot...

U.S. Gas Exports to China

China is the fastest growing natural gas consumer in the world. In 2016, the first cargo of LNG from the U.S. arrived at China. The Chinese government has initiated projects and campaigns to promote natural gas in replacing coal for factories and residential heating for addressing the main sources of air pollution. In 2017, China’s natural gas consumption increased by 15...

Global gas prices up in Q1

According to the latest figures released by Cedigaz, natural gas prices rose in Q1 compared to 2017. This was mainly attributed mainly to the harsh winter season. Since then, they have declined, as is usually the case in spring and summer. Cedigaz expects gas prices in Europe and Japan to be be higher this year compared to last year, due...

India: More competition for imports of U.S. LNG

LNG imports India
Source: HH Brent Blog Bottom Line: A new upstream gas investment in India could create more supply competition in a key end market for U.S. LNG. Moreover, India’s downstream gas market is already demonstrating some difficulty in absorbing the initial cargoes from its long-term U.S. LNG contracts. Market Context Despite the size of its economy, India is only the world’s 13th largest...

LNG: fuel of the future?

Source: Shefali Shokeen, Senior Research Analyst, Drewry Maritime Research With less than two years before the sulphur cap comes into force, LNG is looking more plausible as the marine fuel of the 21st Century. Many shipowners are still weighing up the dilemma of how to comply with the stringent new rules on sulphur emissions, due to come into force in January 2020....

Profit-sharing provisions in LNG SPA’s with delivery to the European Union

Asian LNG spot prices
By Emmanuel Reille & Delphine Jacquemont The main difference between a liquefied natural gas (LNG) sale and purchase agreement (“SPA”) and a gaseous gas supply agreement lies in the greater flexibility afforded to both the purchaser and the seller with regard to the gas' final destination. Indeed, ships carrying LNG may modify their destination depending on demand and price fluctuations...

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Latest Posts

lng-pricing

LNG Derivatives Market Maturing

Cheniere & CME Group are developing a physically settled LNG futures contract, delivering at Sabine Pass. This will add to existing SGX & ICE...

European LNG Imports Slump in H1 2018

European net LNG imports in H1 2018 did not sustain the growth momentum which was seen in 2017 (nearly 5% Y-o-Y growth in H1...

Global LNG Trade Continues Strong Momentum Q1 2018

The global LNG trade in Q1 2018 sustained the growth momentum which was seen in 2017 as total LNG net imports grew by 9.6%...