LNG Portfolio Players On The Rise
Looking at the total liquefied natural gas (LNG) volumes sold globally, there has been an increasing percentage of portfolio volumes contracted without specifying a liquefaction plant or country of LNG origin. Among the 117 million tonnes per year (tpa) term sales and purchase agreements (SPAs) signed between 2001 and 2005, only 3% were portfolio contracts. That number grew to 10% for the SPAs signed from 2006 through 2010.
The percentage of portfolio volumes sold in the periods 2011-2015 and 2016-2019 was 20% and 26%, respectively. However, the total signed SPAs declined by 41% from 2011-2015 to 2016-2019, implying that more spot volumes and new pricing mechanisms are expected. When it comes to sellers, Shell, Total, BP, Petronas, and Eni are the most active companies signing portfolio SPAs, corresponding to their geographically diversified LNG capacities.
Graph showing annual oil production decline for horizontal wells
Source: Rystad Energy