Changing Markets and Contracts of the LNG Business

Abstract

The development of new consumer states of LNG and the movements of liberalisation and regulation in existing markets are resulting in new and innovative arrangements for the sale and purchase of LNG. These new arrangements differ from the more traditional arrangements and, in many markets, militate against the continuation of existing long-term contracts and relationships. The acknowledged political risk in relation to the producer states of LNG is now being accompanied by a new political risk in consumer markets: the sophisticated political risk arising from liberalisation and market and regulatory change.