US LNG supply surplus increases risk for portfolio players

Monday, 06 January 2020

Global market are flush with new supply from the latest round of US LNG project build-out, but the prevailing ‘tolling’ model makes offtaker exposed to a significant downside risk. LNG offtakers from US liquefaction have to pay tolling fees, regardless if they take capacity, which can leave them out of pocket at times of falling demand in high-priced Asian markets.


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