LNG Storage

20 June 2017 : Traditionally, LNG storage is used to smooth temporary supply-demand imbalances and protect end users from short-term LNG price volatility. But, as the LNG market becomes more complex storage capacity is being used in other ways. Destination flexibility is becoming increasingly common in long-term Sale and Purchase Agreements (“SPAs”) and short-term or spot traded volumes are gaining market share (Fig. 1). Non-destination specific volumes accounted for 23% of the market in July 2010, a market share which grew to 30% in July 2016. As LNG trading patterns become less certain, storage is becoming a strategic component in the LNG value chain. Please fill out the following form to access the full article.