May 2019

LEAD STORY

The LNG market has grown increasingly complex over the past decade, as a greater number of participants utilize a broader variety of trading strategies. While cargoes were historically mainly delivered under long-term fixed destination contracts, a growing portion of LNG is being sold under shorter contracts or on the spot market.

Also in this issue

LNG contract prices, at which most Australian LNG is sold, are forecast to edge down after 2018-2019, as the recent rise in oil prices eases off. Spot cargo prices are also expected to decline in the short term, before recovering in the early 2020s as the global market tightens.

Operators of marine vessels have several options for complying with International Maritime Organization 2020 sulfur limits.

LNG as marine fuel has moved from being a promising option to a serious alternative for the shipping industry ahead of the International Maritime Organization’s 0.5 percent global sulphur cap coming into effect in 2020.

French major Total has that that its overall liquefied natural gas volumes are on the rise and are set to jump substantially for a third consecutive year and in the future when the focus is on securing more long-term Russian and US offtake.