Global Oversupply Due to LNG and its Impact on Pricing

July 6, 2017 3:45pm

Edward Gomersall
Senior Analyst
Poten & Partners


Bernhard Blumberg
Senior Manager Gas Supply and Portfolio Management
EnBW Energie Baden-Württemberg AG


Vladimir Drebentsov
Head of Russia & CIS Economics
BP Russia

Chikako Ishiguro
Senior Analyst
Osaka Gas Co., Ltd

Traditionally, all developments of LNG were backed up by oil-indexed contracts. Now that the market is becoming liquid: How will it affect LTG supply contracts in future? Will they still exist in the near future?
  • Is LNG becoming sufficiently liquid that it has its own pricing mechanisms?
  • US LNG Contracts – is there any scope for price reviews of these contracts?
  • How this new source of supply (LNG cargos to europe) will be affecting the historic suppliers.
  • Will US variable cost drive price in Europe even if the two largest suppliers have potentially a strong influence on the market?
  • Analysis of demand looking forward to 2025: what is the impact of potential carbon tax and the effects of COP21?
  • With LNG facilities in the Black Sea, how do you get LNG through the Bosphorus, currently prohibited to transit by Montreux Agreement?
  • What is the maximum additional LNG volume that could reach Europe on a transportation capacity basis?
  • Will Canadian and “next generation” LNG projects take off? How are they going to affect LTG?
  • Do LNG Reload assessments reflect the fair market value of the buyer’s alternative – and therefore the fair value to seller?
  • Will LNG contracts eventually be priced at the same level as pipeline contracts?