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LNG contract and tender trends

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What’s inside this report?

Our latest quarterly assessment of LNG contract and tender trends.

With each new report, you’ll get access to a full set of data files and a slide deck discussing the hottest trends.

Download the data files and perform your own analysis, using our interactive tools to filter and cut the data in multiple ways.

What key questions does this quarter’s report answer?

  • What is the appetite for additional Henry Hub indexation in Asia?
  • How will IMO regulations impact the relationship between Brent and JCC?
  • How do contracts support new pre-FID projects?

16 October 2020

LNG contract and tender trends

Report summary

Coronavirus has shaken up LNG contracting. With prices at record lows, buyers have sought levers to reduce contracted offtake creating pressure on existing contracts. Where terms allow, buyers have exercised downward quantity tolerances (DQT), cancelled cargoes and attempted to invoke Force Majeure. This is having consequences for new contract negotiations. Since February, the number of new contract agreements have been lower than in the same period in 2019 (thirteen Sales and Purchase Agreements (SPAs), and four non-binding agreements). Terms are being re-evaluated. Buyers and sellers are taking time to re-assess the contracted/uncontracted balance in their portfolios and re-consider new contract pricing. Buyers are continuing to push for lower oil slopes. Consequently, a number of recently signed long-term contracts to Asian markets have reportedly been priced at historically low oil indexation levels. The lowering of contract prices may allow for an increase in sales activity.

Table of contents

  • Our latest theme (Q3 2020)

Tables and charts

This report includes 1 images and tables including:

  • Extract of the Theme slidepack

What's included

This report contains:

  • Document

    Themes - LNG contracts.pdf

    PDF 1.79 MB

  • Document

    LNG Contract Trends

    XLSX 170.11 KB