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Article: Spotting new trends: as the global market for liquefied gas rapidly develops, hub and spot trading are beginning to develop in the Middle East.(SPOT LNG)(Industry overview)
- Article from:
- MEED Middle East Economic Digest
- Article date:
- November 24, 2006
- Author:
CopyrightCOPYRIGHT 2006 MEED Middle East Economic Digest. All Rights Reserved. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The 30-year-old trade in liquefied natural gas (LNG) from the Middle East is about to see some major changes. While LNG trade has traditionally been conducted on a long-term contractual basis, one-off and non-committed spot deals are coming to the fore.
There are two prime reasons for the growth. First, there has been a steep rise in domestic demand for gas in the Gulf. Second, the global LNG industry is increasingly keen to secure supplies from the spot market under favourable commercial rates, after Henry Hub prices recently peaked at $13 a million BTUs. There is growing evidence of the new trend. Last month, Qatar Liquefied Gas Company (Qatargas) signed a ...