LNG macro analysis, page-1541

As quoted, buyers' appetites for long-term contracts is growing as much as Asian demand for LNG. All bodes well for LNG Ltd (a Canadian company ).

Even with all those projects coming online, supplies of LNG might still tighten in the coming years as Asian countries reduce their reliance on coal, according to another report from the Norwegian research firm Rystad Energy. That could be why buyers are increasingly signing longer contracts, Rystad said.

Rystad analyzed long-term contracts signed in 2018 and found that the average duration of the contracts has increased, suggesting that LNG buyers are less confident they can secure all the LNG they need in the spot market. “The large established Asian buyers — such as Japan, South Korea, Taiwan and China — will continue to rely on long-term contracts to ensure security of supply,” said Sindre Knutsson, senior analyst on Rystad Energy’s Markets team.