Price volatility upends SPAs as buyers demand flexibility
Prolonged LNG price volatility is upending sales and purchase agreements (SPAs) as traders sound alarm over JCC/Henry Hub swings eroding fixed-price economics. Risk-averse buyers increasingly demand take-or-pay flexibility, diversion rights and reopeners to avert margins getting eroded or wiped out.
Brent’s flirt with contango could make OPEC+ cut supply
If the Brent crude oil market begins to “flirt with contango,” OPEC+ will likely cut production, Rystad reckons. The primary goal of oil and gas producers remains maintaining a backwardated market structure, with crude prices impacting oil-indexed gas and LNG contracts.
Middle East LNG sellers gain market share
Long-term LNG contracting is off to a strong start as Middle East sellers take advantage of the 'Biden Pause' on US project permitting. Over 58 mtpa of sales and purchase agreements (SPA) were contracted from January through September 2024, compared with over 94 mtpa of new LNG SPAs and HOAs signed last year.
US energy and LNG contract firm FMC still ‘fairly resilient’ amid slump in earnings
FMC Technologies Inc., the US-based energy and liquefied natural gas project contractor and services supplier, posted a first-quarter drop of 29 percent in revenues to $1.2 billion as net income also plunged because of the industry slowdown, restructuring costs and the negative impact of the strengthening dollar.
