In this paper we projected supply competition emerging toward the end of this decade and beyond with more potential for non-oil linked priced LNG from North America. A “foreign” gas-on-gas market price impact on Asian LNG market will be indirect – there will be limited delinking from oil price indexation. Forty years of Asian LNG industry tradition will be resistant to dramatic change.
It is more a question of exactly how the oil linkage is set rather than will there be an oil linkage or not. Oil-linked pricing will remain as the primary longterm contract pricing indexation methodology in Asia
