Platts: LNG Producers Must be 'Creative' as Buyers Retreat From Long-Term Deals: Qatargas

Producers of LNG are having to come up with new ways to market their LNG volumes, as buyers move away from long-term contractual discussions, Chief Operating Officer, Commercial and Shipping, at Qatargas, Alaa Abu Jbara, said Wednesday.

"With the promise of new supply from the Australian and the US projects, we have seen traditional LNG buyers moving away from long-term commitments, increasing their confidence in the short-term market and adopting a wait-and-see approach with the prospect of abundant supply," Abu Jbara said at the Gastech Conference in Singapore.

"We see the market trends and we are trying to be as reliable and flexible as we can be...We have customers that request certain things from us and we are working closely with them," he added. "We also see a lot of new players coming to the market, portfolio players, traders...The more people in our business the better".

While Qatargas' core business remains its long-term deliveries, the producer's spot and short-term activities have been growing recently, according to market participants, because low consumption from its long-term customers has led to excess volumes. MORE