JERA and KOGAS strengthen LNG ties amid uncertain global energy supply

The gas world revolves around the decadal supply contract. 20 years is a normal term. This means the buyer commits to 20 years of deliveries come what may and the seller commits to 20 years of cargos come what may. Sellers need those contracts as they are the foundational stone to underpin the financing of their multi-billion terminals and ships. But the market has gone much more short-term. Apart from some portfolio speculators, there is no new LNG in such a world. If buyers want the security of supply, they must get ready for long-term partnerships. Thats a piece of work. 

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