Skip to main content

Collapse in LNG contract lengths and volumes raises future supply concerns

Published by , Editor
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/

You might also like

NNPC signs LNG agreements with Wison and SDP Services

In its efforts to further boost natural gas utilisation in the country and enhance Nigeria’s gas revenue, NNPC Ltd has signed two major agreements to deliver LNG to the domestic gas market and the international LNG market.

 
 

Embed article link: (copy the HTML code below):