The News International: Trafigura Replicates Oil Market Tactics to Dominate LNG
27 Aug 2015: “Trafigura declined to comment on its strategy or growth outlook.’They´re taking the classic trading model from other energy markets and applying it to LNG, using infrastructure and shipping to take advantage of opportunities, it´s the typical bag of tricks used by traders,’ Jason Feer, head of business intelligence at Poten & Partners said.
“Trade houses ability to manage risks around a buyers terms and conditions, along with managing payment, have helped them increase their market share of LNG.’They use their balance sheet, they´re willing to go places other people aren´t, they´re willing to take risks that major oil companies aren´t,’ Feer said.
“Trafigura traded 1.7 million tonnes of LNG in their 2014 financial year which ended on September 30 and traders and analysts said this could have doubled in 2015. ‘There´s going to be a very significant jump in their volumes this year, they clearly have ambition,’ said Feer.”