| |
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


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
Requester's name : .............
Department : .............
Authoriser's Name : .............
Authoriser's signature : .............
Date : .............
Cost Centre : .............

Questions about this report?

Frequently Asked Questions
  • Europe: +44 131 243 4699
  • Americas: +1 713 470 1900
  • Asia Pacific: +61 2 8224 8898
contact us

Why Wood Mackenzie?

Wood Mackenzie, a Verisk Analytics business, has been a trusted source of commercial intelligence for the world's natural resources sector for more than 40 years, empowering clients to make better strategic decisions with objective analysis and advice.

We work across every sector of oil, gas, power, renewables, chemicals, metals and mining, covering more than 150 countries. Our proprietary data and models are at the core of everything we do, ensuring our independent asset and company valuations are thoroughly robust and that we offer an accurate forward-looking view of economic indicators such as market supply, demand and price trends.

Our 500+ analysts are based in the regions they cover, cultivating an unrivalled depth of understanding to help clients accurately identify new opportunities, define their strategy and improve business performance.

At every stage, our teams readily collaborate and share their insight to provide an integrated perspective across entire industries. It is this unique and rigorous analytical approach that ensures we are recognised as the industry standard by the world’s most innovative organisations.