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Tuesday, 4 April 2017

LNG sellers ready for more flexible contracts after years of pressure | Reuters

LNG sellers ready for more flexible contracts after years of pressure | Reuters:

"Major producers of liquefied natural gas (LNG) such as Woodside and Shell are softening up on years of resistance to granting buyers more flexible term contracts, potentially opening the door to a more actively traded market for the commodity.

LNG executives, traders and dealmakers are gathering in Chiba, just outside Tokyo, for an industry conference this week. Top of the agenda has been the increased push from LNG importers wanting more flexibility over what they are allowed to do with supplies they buy under decades-long contracts.

The pressure from buyers culminated in March when the world's biggest importers in Japan, South Korea and China agreed to form a club to focus on forcing producers to drop so-called destination clauses, which prohibit them from selling imported LNG to third parties."



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