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Since this year, international liquefied natural gas (LNG) market pricing mechanism, the emergence of a new changes. In February, the first single cash-settled LNG otc swap contracts clinch a deal; Trade both parties is Wall Street investment Banks and a big oil company.
The next 10 years, international LNG market will rapid development, its pricing mechanism also will then to mature. According to the international energy agency and investment banking data, global LNG production future 2 ~ 4 years will increase by 30% ~ 50%. Meanwhile, the market traditional, long-term contract pricing also is in produce change. Especially in Asia in the spot market, LNG, which helps price index increased the formation and more mature financial tools play a role. Investment Banks, traders and other professional financial institutions began to enter the field.
In China, according to the general administration of customs data, 2010 China LNG imports of 936 million tons in 2009, improve 69% than expected this year, will import 1200 tons.
China's LNG industry development of paid more and more attention, China is planning and implementation of the coastal LNG project there provinces of guangdong, fujian, zhejiang, Shanghai, jiangsu, shandong, liaoning, etc, these projects will eventually form a coastal LNG terminal and trunkline and conveying pipe network.
China's energy experts estimate, according to China's LNG use plan, by 2020, domestic production capacity will reach 240 billion cubic meters. And the national development and reform commission on imported gas aspects that in 2020 China want imported 350 billion cubic meters, the equivalent of 2,500 tons/year, is the amount of terminal of guangdong province seven times.
Last month, sinopec in Australia signed 20 years period, the annual purchase 430 million tons of LNG agreement; Therefore, sinopec 15 billion takeover of the Australian APLNG 15% of the company shares.
On the other hand, is also seeking and China last month, Indonesia, raising to negotiate the gas prices in China of LNG. In recent years, China has agreed to purchase price of the LNG from 2002 per unit ($2.4 million BTU) raised to $38,000. But with global oil prices rise, Indonesia and again request prices.
In Asia, Japan and South Korea LNG spot market development fastest. Pullman's company February 2009 launched the market price based on spot trading of "South Korea benchmarking", namely JKM. Brushstroke cash-settled LNG swaps, was based on JKM. According to expert statistics, Japan, Korea's LNG spot transactions have five or six a week on average pen.
With China's large area LNG plumbing put into use, fully appear likely relatively active spot market. Once appear to transparent, authority and impartial LNG index, financial institutions and LNG industry chain between the enterprise, can generate cash settlement of LNG swap deals, help enterprise effective management of price risk.
In commodities futures trading in the field, China already ranked in the global scale. But commodities over-the-counter swap deals, in China or blank. In foreign countries, such as the intercontinental exchange, its oil futures traded daily more than 100 million hand (each hand contract is 1,000 barrels of oil), and the volume of crude oil over-the-counter swaps is several times, digital field even more than ten times.
LNG development in China is big trend, which for China's oil enterprise, distributors and end users, and China's financial institutions, is an important opportunity of development. Fill a blank, the financial system onshore commodity swap deals launch, need regulators and market participants vision consciousness and collective wisdom, need an open attitude; After all, only more LNG foreign suppliers and financial institutions are involved in renminbi, based on the Chinese market price of spot benchmarking/index, China swap deals in the market "pricing" might just began to get established.
Regarding the domestic Banks, Banks, futures companies and exchange, provide for the customer swaps design, trading, brokerage, risk control, accounts settlement, etc., can make the multi-level service by differentiation of financial institutions, while making big competition has been doing big financial institutions have a chance and stronger.
Finally, also have a natural gas futures products field, forming a complete launch price risk management and found the comprehensive system.