Wednesday , July 8 2020
Home / Chinmayee Atre and Eric Yep

Chinmayee Atre and Eric Yep

Articles by Chinmayee Atre and Eric Yep

LNG sector transformation underway as long-term contracts dwindle

September 17, 2019

Global LNG procurement trends are undoubtedly shifting toward shorter contracts with smaller volumes and increasingly flexible commercial terms.
With many long-term supply contracts set to roll off in the coming years, renewals are likely to be for shorter timeframes.

The traditional 15-20 year agreements that underpin LNG projects will be much harder to come by, and only long-term contracts by large core suppliers such as Qatar will continue to form the backbone of global LNG supply.
The contours of long-term contracting activity will also change, with sellers capitulating on most major contractual conditions like destination flexibility, resale rights, price indexation, take-or-pay clauses, and volume flexibility.
On the supply side, new liquefaction capacity and offtake is also

Read More »