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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
LNG
Europe is largely reliant on spot LNG supplies with little progress in locking in long-term contracts favoured by many Asian buyers. Europe accounted for more than a third of global spot market trades in 2022 up from around 13% in 2021 and could reach more than 50% this year according to Reuters if no long-term contracts were signed.
- The lack of long term contracts is pressuring European LNG imports prices with spot prices much higher than negotiated long-term deals. The cost of its LNG imports more than tripled in 2022 to $190 billion according to the IEA.
- A recovery in LNG demand in China this year could add competition to global supplies and pressure spot prices as European looks to replenish gas storage ahead of next winter.
- LNG buyers are reluctant to commit to the cheaper long term deals due to the conflict with European climate targets. Suppliers often offer contracts up to 25 years in length and ending well into the start of net-zero targets.
Source: Reuters
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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