Asian LNG derivatives market becoming fair price indicator

By Staff reporter 7 September 2017

The derivatives market in Asian LNG is gaining in liquidity and is fast becoming a fair price indicator, according to the Financial Times.

A shift among the large buyers, including Japan and South Korea, to favour short-term LNG sales agreements and the increased presence of energy traders such as Vitol, Gunvor and Trafigura are helping the market to become increasingly flexible and liquid.

Derivatives trading volumes have increased as LNG dealers and companies look to hedge their short-term agreements.

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