Insight
For sale: fixed price LNG
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Report summary
A challenge for LNG fixed pricing offers is the current oil and LNG price outlook. Several Asian LNG buyers have highlighted the a fixed price offer of $8/mmbtu really doesn’t look that attractive. But fixed price LNG could be attractive to LNG into power projects in emerging markets.
What's included
This report contains
Table of contents
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Key messages
- Fixed price offer is at a premium to recent Asian LNG prices
- A challenge for fixed pricing LNG offer is the current oil and LNG price expectations
- Fixed pricing could offer index diversification but creates risk of being out of the money
- The fixed pricing offer makes some legacy US LNG supply deals look expensive
- Fixed price LNG improves prospects for gas to into power
- Gas plants are cheaper to build but more expensive to run than alternatives
- Portfolio LNG suppliers have an advantage compared to pre FID LNG projects
Tables and charts
This report includes 4 images and tables including:
Images
- For sale: fixed price LNG: Image 1
- For sale: fixed price LNG: Image 2
- Fixed price LNG vs oil indexed deals
- Cumulative CAPEX and OPEX of a single power plant burning fixed price LNG or coal without CO2 tax
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