China is interested in buying US LNG to satisfy its growing demand but is seeking greater long-term cer-tainty over prices,supply and governmental support as it steps up its global supply diversification. China does not want to commit to the current model for US LNG exports,where buyers sign long-term deals for liq-uefaction capacity at a fixed price and then take the risk of securing gas at Henry Hub-based prices.Instead it prefers a more traditional model,with term deals providing price and supply stability in gas production,pipeline transportation, liquefaction and shipping.Such models are typically used to monetise stranded gas resources,but US gas is far from stranded and producers do not want to commit to long-term price agreements because they could lose money if domestic spot gas prices exceed long-term contract prices.
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