Rewriting the LNG rulebook

New US Gulf Coast gas contract highlights the sector’s changing buyer-seller dynamic and increasing demand for pricing flexibility

US-based gas exporter Commonwealth LNG launched a new LNG offtake tender in mid-January that takes an innovative approach to attracting customers. Under the terms of the tender, described by Commonwealth as the first of its kind, prospective buyers can secure future term supply at “volumes, pricing and durations of their choosing” through a competitive bidding process. Tolling, free-on-board and delivered ex-ship offtake agreements are all being offered as the Gulf Coast firm bets on buyers’ desire for flexibility. “I think flexibility is still important, probably more so as a result of the [market] volatility,” says Jason Feer, head of business intelligence at LNG advisory Poten & Partn