Exxon’s Pacific Partner Sees LNG ‘Revolution’ Among Buyers
- LNG buyers use glut to recalibrate future contracts: Botten
- Company to start new supply contract negotiations next year
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Exxon Mobil Corp.’s partner in a $15 billion liquefied natural gas export project in Papua New Guinea sees Asian buyers pushing back on the pricing and structure of LNG contracts as a glut of supply gives them greater bargaining power.
Oil Search Ltd., the Sydney-based producer which owns a 29 percent stake in the Exxon-operated PNG LNG development, sees signing traditional long-term deals “very unlikely” in the current market, according to Managing Director Peter Botten. The company plans to begin negotiations for new contracts next year, it said in a presentation Tuesday.