The rate at which spot cargoes grow as a proportion of the overall market may be slowing
LNG trade trends defy assumed truths
The inexorable rise of spot trading may be losing momentum as the market finds new ways to balance
LNG industry participants and analysts are re-evaluating fundamental aspects of the business in response to the at-times startling events and trends of the past 15 months. In particular, they are challenging received wisdom on how spot trading and market balancing will evolve. One example is questioning whether LNG trade is on track for ever-greater commoditisation, with the ready availability of spot cargoes taking an ever-increasing share of the market from term contracts. Price volatility and security of supply failures in several markets—notably Japan and Pakistan—appear to be changing mindsets around the most appropriate balance of spot and term contracting. c.30pc – Share of spot
Also in this section
4 December 2025
Time is running out for Lukoil and Rosneft to divest international assets that will be mostly rendered useless to them when the US sanctions deadline arrives in mid-December
3 December 2025
Aramco’s pursuit of $30b in US gas partnerships marks a strategic pivot. The US gains capital and certainty; Saudi Arabia gains access, flexibility and a new export future
2 December 2025
The interplay between OPEC+, China and the US will define oil markets throughout 2026
1 December 2025
The North African producer’s first bidding round in almost two decades is an important milestone but the recent extension suggests a degree of trepidation
