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LNG ante portas: Growing LNG penetration in Europe

20 Oct

In the previous post we highlighted that a significant oversupply is building up in international LNG markets, and suppliers have to find new markets as Asia seems to get satiated with LNG. In the longer run, we expect new markets to emerge while the deployment of LNG in transportation will become more widespread. However, in the next few years LNG can be sold only at those markets where infrastructure has already been installed to regasify and distribute LNG to consumers. Therefore, many free LNG cargos will head towards the European markets. In this post we examine to what extent LNG will be able to penetrate the competitive European gas markets and how market conditions will change as a result of the intensified international competition. […]

Head hunting for LNG traders is on

5 Oct

The birth of liquid international LNG markets

In the second post of our LNG series we focus on the restructuring of LNG markets and how they transform from a rigid, long-term structure dominated by a few incumbents into a flexible and vivid market place.

This restructuring opens doors for new entrants. There will be new buyers without rigid long-term commitments and new traders with less market power. They will distribute LNG towards new markets, even to Hungary. Following our slightly technical post today, next week we will continue our LNG series with focusing on how LNG will penetrate the European markets. […]