Cheaper LNG unlikely to derail Asia’s hub plans
BG’s Methane Kari Elin delivers first LNG to Singapore’s LNG terminal. (BG Group)
Lower LNG prices and a lack of appetite for Henry Hub-indexed contracts in Asia are unlikely to derail the trading hub ambitions of key players such as Singapore and Tokyo, energy consultancy Wood Mackenzie has suggested.
The dramatic decline in oil and LNG prices over the past six months has added a new twist to the Asian LNG market, with Henry Hub-indexed LNG no longer priced at a discount to oil-indexed LNG. This has led to some speculation over the need to break away from the long-term oil-linked deals traditionally favoured by Asian buyers.