A Gastech exclusive: making sense of LNG market volatility
How can LNG buyers navigate LNG procurement in the current volatile market environment and amidst evolving contracting dynamics?
1 minute read
Mangesh Patankar
Vice President, Gas and LNG Consulting
Mangesh Patankar
Vice President, Gas and LNG Consulting
With 14 years of experience in the gas/LNG and power industry, Mangesh has a deep understanding of client challenges.
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Suan Sim Chan
Principal – APAC Gas and LNG consulting
Suan Sim Chan
Principal – APAC Gas and LNG consulting
Latest articles by Suan Sim
View Suan Sim Chan's full profileThe LNG market is at a critical juncture. The uncertain outlook has affected pricing and contract terms significantly and widened the gap between buyer and seller aspirations. With the volume of contracts signed at the highest peak in more than a decade in 2022, the opportunities are there – but the ongoing volatility is challenging to navigate.
Many LNG buyers face the challenge of ensuring LNG supply security, while keeping their procurement costs competitive and contractual terms flexible. Simultaneously, the terms in LNG sale and purchase agreements (SPAs) are also evolving as LNG trading increases.
This insight emphasises the evolving nature of LNG contracts and buyer-seller behaviors influenced by market dynamics. Pricing structures vary based on contract terms, raising questions about procurement processes. Getting procurement right has long-term economic and operational benefits, and we discuss the typical questions addressed by Wood Mackenzie's consulting team for LNG buyers.
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