LEAD STORY
Saeid Mokhatab and David Wood
There is a distinct contrast between two prevailing LNG trading alternatives: 1) the traditional, risk-averse, long-term contract-dependent with a floor price and tough take-or-pay terms; 2) the free market, short-term and long-term trading terms with prices indexed to a volatile gas market benchmark price.
These trading alternatives - result in a quite different balance of risks and rewards among the parties in each case.
Long-term contracts give sellers the assurance that they have defined and secure outlets for substantial volumes of gas at prices usually indexed to market prices for competing fuels.
Also in this issue
Looking back over the last 20 years it can be seen that in terms of both the types of trading and the volumes of cargoes being transported the LNG market has come a long way in a short time.
By 2009 the size of the LNG carrier fleet is expected to increase to 300 vessels and by 2011 it is likely to reach 450 vessels.
It is inevitable that with this level of expansion comes innovation and flexibility, not only on the part of the oil and gas companies developing new sources of supply, but also on the part of the LNG buyers in both traditional and emerging markets.
Karim Nassif and William Ferara
The share of liquefied natural gas as a proportion of total natural gas demand is set to grow in Western Europe, with LNG suppliers and importers among the key beneficiaries.
Sokrates Tolgos
The LNG business is generally governed by risk-sharing consortia as well as by long-term supply and ship charter contracts with durations up to 20 or 30 years.
A reliable and stable LNG supply from the producing to the consuming country is an essential requirement in this business, but equally imperative is the continuous search for increased profitability in the transport chain.
Linda Hutchinson-Jafar, Port of Spain, Trinidad
Oscar Alfredo Prieto, a 52-year-old Argentine, has taken over as Chief Executive of Atlantic LNG of Trinidad and Tobago, the key source of supplies for the United States as it builds up its liquefaction capacity.
Thomas Dawson, President of LNG Impel, one of the planners of the Dubai LNG Hub, explains how the project will work.
LNG Impel of Canada and partners from the United Arab Emirates have announced plans to develop a Middle East hub for LNG storage at a cost of around $1 billion.
