Related Articles
Forward article link
Share PDF with colleagues

The glut still weighs

Higher oil prices will lift some LNG contracts, but do little to support the spot market

Long-term contract prices for liquefied natural gas in Asia-Pacific, which are indexed to crude futures, should move higher with any increase in oil prices this year, but spot LNG prices are unlikely to be much affected thanks to persistent oversupply. A large portion of LNG contracts globally are linked to oil prices - typically the Japan Customs Cleared (JCC) price in Asia - with a lag of three months. The gradual recovery in oil prices last year- given momentum by the recent Opec deal - is now feeding into LNG prices. "Global oil-price movements in 2017 will flow through into oil-indexed contracts in the same manner," Tomás O'Loughlin, senior credit officer for infrastructure finance, a

Also in this section
Cyprus dreams again
24 May 2017
Developers working offshore the island think they may be about to unlock vast new reserves. Taking them to a depressed market will be much harder
Natural gas still not getting through in Europe
17 May 2017
Coal still beats natural gas in many European markets, notably Germany. This makes no sense, says Wintershall chief executive Mario Mehren
Gazprom's next gas battle
15 May 2017
The Russian giant is ready to defend its market share in Europe and face off the threat of American LNG