Europe’s LNG Contracting Options for an Uncertain Future

As European LNG buyers navigate an uncertain energy future, they have contracting options beyond long-term contracts and spot market purchases. Expiring legacy contracts and substantial LNG volumes held by portfolio players and trading houses present immediate opportunities for shorter, more flexible contracts. Additionally, exploring innovative contracting approaches such as seasonal LNG contracts and LNG options contracts can provide more tailored solutions to Europe’s variable and uncertain LNG requirements in the face of the continent’s long-term demand uncertainty and decarbonization goals.