The LNG industry has undergone significant changes in recent years, including the US becoming an LNG exporter, increased imports to Japan, and European gas demand collapsing. New players have entered the market, spot-trading volumes have increased, and global prices have converged. However, the pace of change has been slow, and oil indexation remains dominant in LNG purchasing. Despite this, price convergence has been apparent since 2015, coinciding with the trend in oil prices. The Asia-Pacific region remains the global center of LNG demand and oil-indexed buying. These changes have implications for market participants, and the industry is still in a period of transformation towards liquid trading markets.
