About 290 million tonnes of LNG imported last year was transacted on a spot or short-term basis. The definition of spot or short-term transaction is “volume delivered under contracts with a duration of 4 years or less.”
Despite the positive recent developments and future outlook, natural gas has arguably not yet achieved the most optimistic growth projections.
Asia-Pacific spot liquefied natural gas prices have retreated recently, through the combination of rapid demand growth in China, coupled with insufficient facilities for seasonal gas storage, is expected to maintain upward pressure on the spot market during the Northern Hemisphere winters.
If the Mediterranean Sea becomes an Emissions Control Area (ECA) countries on its coastlines will have to prepare assets that will provide the fuel to conform with regulations.
Among the large volume LNG production facilities that have been proposed recently, some owners favor multiple mid-scale trains, while others lean toward the more traditional large-scale trains to meet similar production requirements.
Two factors have recently had a positive influence on the demand in the floating storage regasification unit (FSRU) market.