Evolution of the International LNG Market
Brito, Dagobert L.
Hartley, Peter R.
We argue that lower shipping costs together with some other recent changes in the LNG industry are likely to favor shorter term multilateral trades of LNG relative to long term bilateral and project-specific contracts. Such a change in market structure would mimic previous changes in the world oil market, adding credence to the hypothesis that fundamental economic factors are the dominant driving force.