2021 saw a surge of interest in new long-term contracts
LNG short-term liquidity goes into reverse
Spot and short-term LNG trading have fallen sharply as concerns over price volatility and supply security make term contracts more attractive, says importers’ group Giignl
The commoditisation of the LNG business—as enumerated by volumes traded on a spot and short-term basis—went into reverse last year, according to data published by importers’ group Giignl, as buyers fretted over price volatility and supply security. On the flip side, 2021 saw a surge of interest in new long-term contracts, especially on the part of Chinese buyers, which accounted for 26mn t/yr of the 70mn t/yr contracted on a long-term basis. The reversal is striking given that a growing share of spot and short-term procurement has generally been seen as a sign of the increasing sophistication and flexibility of the LNG business. “Due to high prices, some Asian buyers preferred to max out the
Also in this section
8 January 2026
Indonesia and Malaysia are at the dawn of breathtaking digital capabilities. Their energy infrastructure must keep up with their ambitions
8 January 2026
The next five years will be critical for the North Sea, and it will be policy not geology that will decide the basin’s future
8 January 2026
The region’s access to versatile feedstock, combined with policy support, is setting it up to meet growing demand both at home and abroad
7 January 2026
No longer can the energy source be considered a sidekick to oil in the Middle East and neither should it step aside for less convincing alternatives
