Gulf Times: Spot Trade to Capture 20% of LNG Market

“Short-term or spot trading in liquefied natural gas will expand to account for 20 percent of the market by 2012, driven by scarcity, price fluctuations and unexpected changes in demand, consultants Poten & Partners said. Trading of one-off cargoes not covered by long-term contracts will probably grow by more than 10 percent a year, Daryl Houghton, a consultant at the U.S. firm, said today in Darwin. The proportion will rise from 13 percent of the LNG market at present and just 2 percent in 2000. While Trinidad and Egypt are the biggest providers of spot cargoes, Qatar will play an increasing role, he said. LNG, natural gas chilled to liquid form for transportation by tanker, is being traded between an increasing number of producing and importing countries as it captures a greater share of the total gas market. Spot trades accounting for about 24 million metric tons of LNG took place last year, out of a total 180 million tons, Houghton said.”