Gas & Petrochemicals
LNG
Liquefied natural gas is traded under long-term contracts and increasingly active spot and short-term markets.
MARKET REFERENCES
How the market commonly references price
There is rarely one universal price for a physical commodity. Commercial value depends on the benchmark, specification, origin, destination, timing and logistics agreed between buyer and seller.
- Platts JKM for spot Northeast Asia
- Brent / crude-linked term pricing
- Henry Hub-linked US LNG structures
TYPICAL COMMERCIAL STRUCTURE
How physical pricing is often built
Common structures include: JKM ± differential for spot Asia; Brent × negotiated slope + constant for oil-indexed term LNG; or Henry Hub gas price plus liquefaction / tolling and shipping components for some US-origin supply.
PRICE DRIVERS
What moves the physical differential?
- Seasonal gas demand
- Liquefaction outages
- Shipping distance
- Oil and gas benchmark movements
- Destination flexibility
PHYSICAL TRADE
Commercial considerations
DES delivery is common in LNG; FOB structures also exist. Contract terms around destination, diversion rights, boil-off and vessel compatibility matter materially.
The examples on this page describe common market conventions at a high level. Actual contracts can use different pricing periods, assessments, quality adjustments, Incoterms and negotiated differentials.
Market methodology reference: view source / methodology
PHYSICAL COMMODITY BROKERAGE
Discuss a LNG requirement.
Share the specification, quantity, origin or destination, delivery basis and timing.