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Collapse in LNG contract lengths and volumes raises future supply concerns

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LNG Industry,


A dramatic acceleration of a trend toward smaller volumes and shorter tenures for LNG contracts in 2017 highlights the growing commoditisation of the global LNG market even as it raises troubling questions about future supply.

Average contract lengths for deals signed in 2017 fell to 6.7 years – the lowest ever recorded – compared with 11.5 years in 2016. With many options for supply and uncertainty over future prices, last year buyers signed dozens of short- and medium-term contracts rather than commit to long-term deals that could help support the construction of new capacity that is expected to be needed by the mid-2020s.

Read the article online at: https://www.lngindustry.com/liquefaction/13022018/collapse-in-lng-contract-lengths-and-volumes-raises-future-supply-concerns/

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