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
Also in this section
17 January 2025
Supply glut or supply deficit are both plausible outlooks, with tariffs and sanctions among the key risks that could swing the pendulum
17 January 2025
European Commission is on its way to meeting clean energy goals, but energy security concerns and higher costs may give it second thoughts
17 January 2025
The CEO of QatarEnergy has highlighted the potential impact a new EU directive could have on energy exports to the continent
16 January 2025
The government’s resource nationalism is aggravating the NOC’s debt position and could yet worsen if also tasked with the decarbonisation shift
