Infographic: The rapidly evolving global LNG pricing matrix
Important global catalysts are facilitating a fundamental restructuring of LNG transactions’ key pricing features.
We can expect to see ever-increasing levels of granularity being contested and discovered in LNG pricing. Quality and heating value will be explained through premiums, discounts and differentials to the basis benchmark, along with location and, importantly, the relative value of delivery periods will be expressed by market structure.
New benchmarks focused on centers of production and consumption will emerge, all working in a matrix with the key measures of LNG value and all measured in MMBtu, orbiting the basis – Platts JKM™.