Growing global gas demand to end Asian LNG spot market?

Natural gas has traditionally been bought and sold via long-term contracts of as much as 20 years, linked to the price of crude oil. However, an abundance of natural gas in recent years – thanks in part to increased supply in the US from shale resources – has encouraged the development of an Asian LNG spot market.

“My view is that the LNG market has left phase one – very long-term contracts of as much as 20 years historically between mostly Middle East suppliers and Asian buyers,” says Rodney