Gas deals: There is no middle ground, it seems – 30 Sep 2021

With gas prices sky-high, is this the right time to get into long-term contracts?

China has just done a 15-year deal for LNG

Clearly, while earlier, everyone wanted to be indexed to gas hub prices, the pendulum has swung 360 degrees, and now everyone is looking at indexing LNG to crude. But any indexation now will be at a higher slope than any time in the past. So should you wait and watch? What if you have some quantities you have to necessarily purchase because beyond a point demand destruction is not the option?

One thing is for sure, there does not seem to be any middle ground