Long-Term Gas Deals Become Pricey as World Moves to Quit Russia
- 10-year LNG contracts priced at about 75% above 2021’s rate
- Tighter supplies expected as Europe aims to boost LNG imports
An LNG Tanker vessel waiting to be loaded in Cameron, Louisiana, U.S.
Photographer: Mark Felix/BloombergThis article is for subscribers only.
Liquefied natural gas suppliers are asking clients to pay much higher rates for new long-term contracts, as a global effort to cut Russian imports is expected to keep the market tight for the next decade.
The industry’s top suppliers are offering 10-year contracts that start in 2023 at rates about 75% above the price of similar deals signed just last year, according to traders with knowledge of the matter. Volatile spot prices and a worsening supply deficit outlook triggered a rush by importers to negotiate long-term deals.