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Markets & Forecasts

LNG spot freefall puts Asian buyers on the offensive

Companies such as Petronet and Osaka Gas are looking to renegotiate their term contracts in the light of low spot prices Companies such as Petronet and Osaka Gas are looking to renegotiate their term contracts in the light of low spot prices.
By Tom Hoskyns 9 August 2019 Asia Pacific / Supply & Demand 0 34473
An LNG tanker docked in Japan. (Tepco)

The patience of some Asian LNG buyers is wearing thin. The seemingly ever-widening spread between spot and term prices for LNG is forcing certain companies to reconsider their options regarding long-term contracts.

India’s Petronet said on Thursday that it may look to renegotiate its long-term deals if spot prices remain low for the next 2-3 years. Others are taking more urgent action: Japan’s Osaka Gas is pursuing a price review arbitration against the ExxonMobil-led PNG LNG venture.

While Interfax Natural Gas Insight does not expect spot...