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.
UAE’s exit from OPEC to reshape oil-linked LNG pricing
The United Arab Emirates’ decision to leave OPEC is ushering in a more volatile oil market, with implications for LNG pricing – particularly in Asia, where many contracts remain indexed to crude benchmarks.
LNG price volatility forces contract overhauls
Prolonged price volatility in LNG markets is upending sales and purchase agreements (SPAs) as traders sound alarm over JCC/Henry Hub swings eroding fixed-price economics.
Mitsubishi to buy Aethon’s Haynesville assets in $7.53bn deal
Mitsubishi has disclosed it will buy Aethon Energy's assets in the Haynesville Shale – a move that positions the Japanese company to capitalise on burgeoning LNG exports from the US Gulf Coast. The transaction includes $5.2 billion in equity and $2.33 billion in assumed debt.
Fragility of Japan’s LNG imports put Tokyo Bay supply at risk
JERA global chair & CEO Yukio Kani has pointed out the fragility of Japan’s LNG import system at an industry event in Tokyo Bay, where inventory covers just 10 days. “Any disruption could be critical, diversification is not optional,” he said, adding JERA secured 5.5 million tons of US LNG to meet post-2030 demand.
Financial trade amplifies price swing at TTF in tight market
Financial, not physical trade is amplifying price swings at the Dutch TTF as Russian gas exports to Europe are unlikely to return. Hedge funds had to cut their positions after higher price volatility increased their value at risk (VaR), though analysts reckon there are many CTA buying levels starting in the low €40s/MWh.
