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Weakening Spot Prices Pushing LNG Buyers to Spot Contracts: Platts

LNG
  • Weakening LNG spot prices are sparking buying interest for spot volumes s current prices approach parity with oil-indexed long-term pricing, according to Platts.
  • Typically, oil-linked contracts are a minimum of 10% to Dated Brent, while Far East contracts are nearer to 11-12%.
  • With falling prices, spot contracts are now approaching typical levels for long-term deals.
  • The degree to which players may wish to change to spot will depend on the age of long-term contracts. Those signed before 2022 tend to be more brent-linked whereas newer ones are indexed basis JKM or TTF.

Source: S&P Global Commodity Insights

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