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High Premiums for Diverting Cargos May Delay Developing Global LNG Market

According to speakers and participants at the APGAS conference in San Diego, the increasing globalization of the LNG market may be hitting an obstacle as suppliers, especially Qatar, continue to charge Asian LNG buyers a premium well in excess of the act
September 18, 2007

According to speakers and participants at the APGAS conference in San Diego, the increasing globalization of the LNG market may be hitting an obstacle as suppliers, especially Qatar, continue to charge Asian LNG buyers a premium well in excess of the actual cost of diverting supplies from the Atlantic to the Pacific. Due to storage constraints, LNG importers in East Asia have little choice but to pay the premiums, although speakers told Platts LNG Daily that the situation may change as new supplies and storage facilities come online. [Subscription required]

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