They can play around with fancy contractual mechanisms as they want, this is not going to remedy the essential issue driving volatility in Asian LNG markets. An acute lack of gas storage. When the weather goes cold, Asia goes short on gas in a moment. This means everyone wants the same cargos and this is going to make prices go stratospheric. For a moment. It goes away just as quickly as it comes. Asia needs gas storage and thats no easy feat. Geologically, it’s not in a good place. And even when there are opportunities, they are not built up in 3 months. Here is an opportunity for European upstream. Show Asians how to build and operate storage and make money out of it.
Intercontinental Exchange Inc. (ICE) said Wednesday it plans to launch two liquefied natural gas (LNG) freight futures contracts next month, giving