Analysts Provide Insight Into U.S. Spot Market
An increase in natural gas prices and a move away from long-term contracts could create a more active LNG spot market, according to two energy industry insiders. Karen Harbert, the Assistant Secretary for Policy and International Affairs at the Department of Energy, says higher prices would attract more cargos to U. S. markets. An executive advisor to Hess Energy Trading, Ed Morse, however, says that an impediment to an emerging U.S. spot market is the reluctance of LNG exporting countries to build liquefaction plants without first having secured long-term deals. He notes this may change, though, as Qatar potentially may look to spot transactions over long-term agreements in order to “get the best prices in the market.” Read more in yesterday’s Platts LNG Daily. [Subscription required]