Are Traditional Asian LNG Contracts Equipped to Deal With Extreme Price and Demand Volatility?

January 2022
Region: Asia Pacific
In the last decade, buyers across Japan, Korea, Taiwan and China (the JKTC region) contracted to purchase significant volumes of liquefied natural gas (LNG) on long-term contracts. In certain jurisdictions, recent improvements in energy efficiency coupled with a growth and uptake in renewable energy have prompted a reduction in electric power demand, leaving certain buyers facing an oversupply issue across their portfolios.