How long-term relationships are affected by short-term trade in the LNG industry
Strong, long-standing relationships have always formed the bedrock of LNG trade between buyers and sellers. In Asia especially, building and maintaining solid partnerships with producers is considered to be of paramount importance for buyers for guaranteeing security of supply. But this may be starting to change; the emergence of a more highly-traded market in the Atlantic Basin has blurred the definition of “buyers” and “sellers” and encouraged even the most traditional counterparties to start turning to shorter-term contracts and spot market sales to help balance their supply and demand portfolios. With the arrival of new, shorter-term players onto the LNG scene, LNG Business Review examines how the nature of the long-term relationships between the LNG old boys may be starting to evolve.
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