How four trading houses are shaking up the LNG industry
Trafigura, Vitol, Gunvor and Glencore are dominating the LNG trading landscape. In 2017, these four firms traded approximately 27 Mt of LNG - an impressive 9% of total LNG sold worldwide.
As these four trading houses enter the market alongside large buyers and portfolio players, they start to resemble mini-portfolio players. Past strategy has been to structure their positions on a cargo-by-cargo approach building upon emerging LNG markets in Egypt, Pakistan and Argentina. Now they want more.
Mid- to-long-term supply and market positions provide a platform for future growth - perfectly illustrated by the recent deal between Cheniere Marketing and Trafigura. Investment in LNG infrastructure allows for easier access to markets and trading optionality and creates bespoke solutions crafted to meet buyer needs.
*Our estimate is based on market intelligence, tender data and company publications. Differences may arise due to methodology difference of counting traded volumes and delivered volumes, the availability of data provided and some players may include options, etc.
What is an LNG portfolio player?
Someone with a portfolio of varied supply sources with different contract pricing terms and contract lengths. The advantages of an LNG portfolio provides diversity and flexibility in an uncertain world. Other LNG portfolio players include Total, Petronas, BP and Shell.
Find out more in our report: Commodity traders in LNG – how four trading houses are shaking up the industry
What do LNG commodity traders offer?
How is the LNG market facilitating growth for commodity traders?
What are their respective strategies and ambitions?
An exclusive slide pack for LNG Corporate Service clients, we assess strategic trends for the largest traders, includes detailed company profiles for each of the four largest companies and an overview of five smaller players who are looking to grow their LNG businesses.