Insight

For sale: fixed price LNG

05 May 2017

Get this report

$1,050

You can pay by card or invoice

Share link

Contact us

Submit your details to receive further information about this report.

First name
Last name
Company
Email
Telephone

Country

Message

Consent

Please keep me informed about Wood Mackenzie products, services and events.

For details on how your data is used and stored, see our Privacy Notice.

- FAQs about online orders
- Find out more about subscriptions

05 May 2017

For sale: fixed price LNG

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.

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:

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