Trafigura says its LNG trade more than doubled in 2015

Trafigura, one of the world’s largest commodities trading firms, said on Monday its LNG volumes more than doubled this year. 

The independent trading company boosted its LNG trade to 4.2 million mt in the financial year ended September 30, from 1.7 million mt a year ago, according to Trafigura’s annual report.

Liquidity in the global LNG market grew in 2015 as new supplies from Australia, Indonesia, and Papua New Guinea coincided with the emergence of new LNG buyers such as Egypt, Pakistan, and Jordan. With more available shipping capacity, this has created significant opportunities for independent traders,” Trafigura said in the report.

The market is moving closer to the widely expected tipping point where the majority of global LNG supplies will be traded on a short-term rather than through long-term contracts, the report notes.

Besides boosting volumes, Trafigura said it grew the company’s  LNG trading team in Geneva, Houston and Singapore.

The year also marked a geographical expansion for Trafigura. From the original focus on the Atlantic Basin, Trafigura expanded to markets east of Suez.

Many of our new markets, including Pakistan and Egypt, use Floating Storage and Regasification Units (FSRUs) as a means of rapidly ramping-up supply. This technology is becoming an important driver of market development alongside the traditional approach of building onshore regasification plants appropriate for larger or more established markets,” Trafigura said in the report.

Looking forward, Trafigura expects the LNG market continuing to grow in size and liquidity, with new American and Australian export flows likely to be “a key focus on the supply side and European imports playing an important role in balancing demand”.

 

LNG World News Staff