SL.15 Market and Commercial Innovation – Pricing, Indexation
Thursday 13 July 2023
Spotlight | Autmun Sessions | West level 2, Rooms 211-214
Commercial Stimulii , Clear Filters - See Full Programme
It’s no surprise that LNG contracts with shorter duration, flexible destinations and spot indexation have gained popularity over the years. Spot or gas-linked contracts were a cheaper choice compared to oil-linked ones until 2022 when Title Transfer Facility (TTF) was five times higher than Brent-indexed deals. LNG will be essential for European and Asian supply portfolios to secure energy reliability in the medium-to long-term. How will LNG buyers re-strategize contract duration and indexation to ensure supply at affordable rates over a sufficient time span along their emissions reduction journey?