The compromise may be the increasing popularity of short-term, flexible contracts, which can vary from a few months to a few years and be priced against different benchmarks.
But with temperatures expected to get warmer post-winter, spot prices for cargoes delivered into North Asia in March have fallen to less than half the average price of cargoes to be delivered in February.
Spot LNG prices LNG-AS have nearly tripled since early November as freezing temperatures across North Asia boosted demand and depleted inventories. Since July, prices are up a dizzying 1,000%.
A lack of spare capacity and limited storage options in Asia also makes the LNG market susceptible to sudden jolts in demand and supply, industry sources said.
He said the LNG Easy (Private) Limited and Daewoo Gas Private Limited’ would pursue the LNG virtual pipeline project for supply of the commodity through cryogenic bowzers.