Insight
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6 Pages

Asian LNG pricing and low oil prices


Asian LNG pricing and low oil prices

Report summary

Asian LNG pricing is impacted by lower oil prices in different ways – they impact prevailing contract prices because most Asian LNG contracts are linked to oil; they impact the price of spot LNG through the interplay of contract prices and crude costs; and they could impact future oil indexed long term LNG contracts through impact on their economics. 

What's included?

This report includes 1 file(s)

  • Asian LNG pricing and low oil prices PDF - 303.66 KB 6 Pages, 0 Tables, 3 Figures

Description

This Gas Markets Insight report highlights the key issues surrounding this topic, and draws out the implications for those involved.

For participants, suppliers and advisors who want to look at the trends, risks and issues surrounding this topic, this report gives you an expert point of view to help inform your decision making.

We provide detailed supply, demand and price forecasts based on our integrated upstream, power, coal and LNG research. Our regional gas experts are based in the markets they analyse, providing comprehensive analyses of regional and global gas markets.

If you want to understand complex gas market dynamics and plan for the future, Wood Mackenzie is the premier resource to help you gain a clear, competitive advantage.

  • Executive Summary
  • Prevailing spot prices and contract prices
    • Lower oil prices provide soft ceilings to LNG spot prices in Asia
    • Contract prices will remain high and buyers will maximise spot purchases of LNG
    • Expect some demand growth and some supply curtailment
    • Asian LNG spot prices should have bottomed out for now, but new lows could be tested next summer
  • Future long term contract prices
    • Oil indexed long term contracts - context
    • Impact of low oil prices on oil indexed contracts
    • Impact of low oil prices on US LNG
    • Chart 3: LNG price* comparison
  • Conclusions

In this report there are 3 tables or charts, including:

  • Executive Summary
  • Prevailing spot prices and contract prices
    • Asian LNG pricing and low oil prices: Image 1
    • Chart 2: Japan on-grid oil generation output
  • Future long term contract prices
    • Asian LNG pricing and low oil prices: Image 3
  • Conclusions
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