Decarbonisation imperils long-term LNG contracts
LNG long-term contracts had their moment of truth coming long before decarbonization was even a word. It started with the presumptive massive market entry of imported LNG into the US market. Yes, thats 15 years back so we don’t remember anymore. But when shale killed that bonanza, this was slated to have long term ramifications. It just happened that this mad world has delayed the consequences of free LNG sloshing around for more than a decade but there is no escaping the truth. When market participants start to have more choice, they increasingly forego the straitjacket. Simple things can have consequences far in the future. And the true consequences are not always easy to see.
