Asian Freeze Sends Natural Gas Cargo Prices Into the Stratosphere
Stratospheric prices is maybe a big word. LNG at USD 17/MMBtu is certainly no steal but we have seen higher. But this shows us the power of LNG as it flows where the highest prices are being paid. I am sure some pipeline sellers would sometimes like to redirect their gas at such times. Those spikes also show that there still is a place for long-term deals in the business. A well-crafted pricing formula will protect you from that. And more importantly, it will make sure that you get your cargo when it becomes unobtainium. Is that a message for those that have built their purchasing business on spot only?
