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LNG contract 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?

13 April 2021

LNG contract trends

Report summary

Coronavirus has shaken up LNG contracting. Record low prices in 2020 meant buyers had sought levers to reduce contracted offtake creating pressure on existing contracts. Where terms allow, buyers exercised downward quantity tolerances (DQT), cancelled cargoes and attempted to invoke Force Majeure. This was having consequences for new contract negotiations with the number of new contract agreements have been lower in 2020 than in 2019. However, contracting activity has been in recovery since H2 2020 as a new competitive pricing paradigm emerged. Most recently signed LNG-term contracts have a lower indexation of between 10-11%. Record high prices over the winter period of 2020/2021 could spur greater contracting activity in 2021 and upward pressure on indexations, although this has not yet materialised in Q1 2021.

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

    XLSX 168.81 KB