LNG Spot markets?

Much of the talk today has been about the possible formation of an LNG cartel, of large gas producers getting together the way oil producers do via OPEC, to work to control supply and support strong prices.
This is a topic that’s been kicking around for many years, but most agree it won’t happen until LNG has become more like oil and develops a spot market. CERA expects this will happen eventually, but not too soon.
At a morning session CERA senior director Michael Stoppard noted that today, 88 percent of LNG capacity is dedicated to long-term contracts, meaning that output is unlikely to become part of spot market trading.
Of LNG projects under construction only half are dedicated to long-term contracts, however, opening the door for spot markets in the future. But that would still only shift the balance between committed output and uncommitted to 75/25.
Jay Kelley, an attorney with Houston law firm Vinson & Elkins, said that just a few years ago he took a particularly dim view of LNG becoming a commodity traded like oil
“But we’ve come a long way since then,” Kelley said. “Right now it’s a bigger club [of LNG market participants] than every before.”

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