Woodside’s chief executive, Peter Coleman, sees the recent coalition created by major Asian LNG buyers as a sensible move that is no threat to the company.
Speaking to Reuters, Coleman said the move would create more liquidity in the market with three major LNG buyers moving large volumes of liquefied natural gas.
To remind, Japan’s JERA, South Korea’s Kogas and China’s CNOOC Gas and Power Trading & Marketing joined forces to secure more flexible LNG contracts, and especially get rid of the destination clauses.
With the liquefied natural gas market undergoing change as new supply mainly from Australia and the United States hits the market, the oversupply is likely to trigger more trading as LNG producers look to sell uncontracted cargoes.
However, Coleman added that without long-term contracts, large-scale projects with 15 to 20 mtpa production capacity are unlikely to be developed.
The buyers are more interested in trading LNG freely with low oil and gas prices than in signing long-term deals, he said.
LNG World News Staff