LNG

Product Details

LNG (Liquefied Natural Gas) is super‑cooled natural gas (mainly methane, CH₄) chilled to –162°C so it becomes a liquid. This reduces its volume by ~600×, making long‑distance transport by ship economically viable. LNG is now one of the fastest‑growing global energy commodities, with record trade volumes, expanding liquefaction capacity, and strong demand fundamentals through 2035.

Core Takeaway

LNG is a globally traded, flexible, clean‑burning fuel whose market reached record highs in 2025 (437 million tonnes) and continues expanding due to energy security needs, industrial demand, and gas‑to‑power growth.

🌍 What LNG Is

• Composition: ~85–95% methane, with small amounts of ethane, propane, nitrogen.
• Process: Natural gas → purified → cooled to –162°C → liquefied → shipped → regasified at destination.
• Why LNG: Lower emissions than coal/oil, flexible cargo redirection, supports power generation, industry, and marine fuel.

📈 Global LNG Market Status (2025–2026)

• 437 million tonnes traded in 2025, up 6.3% year‑on‑year — strongest growth since 2022.
• Major exporters: United States (110.7 million tonnes), Qatar, Australia.
• New exporters: Canada, Mauritania/Senegal joined global LNG supply for the first time.
• Investment boom:
• 68.4 Mtpa of new liquefaction capacity reached FID in 2025 — highest approvals since 2019.
• Total 206 Mtpa approved over the last five years.
• Market resilience: LNG acted as a “shock absorber” during geopolitical disruptions due to flexible cargo redirection and liquid spot markets.

🔮 Demand Outlook to 2035

• Strong fundamentals driven by:
• Population growth & urbanisation.
• Industrialisation in Asia.
• Rising electricity consumption.
• Rapid expansion of data centres & AI infrastructure.
• LNG demand expected to remain robust through 2035.

🏗️ Infrastructure & Capacity

According to the 2026 World LNG Report:

• Global liquefaction capacity continues expanding, with detailed tables of:
• Liquefaction plants (end‑2025)
• Plants under construction
• Active LNG fleet
• Receiving terminals
• FSRU deployments
• Orderbook of LNG carriers

🚢 Shipping & Fleet

• LNG carrier fleet utilisation remains high.
• FSRUs (Floating Storage & Regasification Units) are expanding rapidly, enabling fast deployment in emerging markets.

⚡ Key Market Trends (2026–2031)

From global LNG market analysis:

• Market size 2026: 553.16 MTPA
• Projected 2031: 822.68 MTPA
• CAGR: 8.25% (2026–2031)

Major drivers:

• Asia-Pacific gas‑to‑power boom
• India aims to increase gas consumption 60% by 2030.
• Over 100 bcm new regasification capacity planned.
• LNG as marine bunker fuel
• LNG‑fuelled fleet grew 33% in 2024 to 638 vessels.
• Expected to exceed 1,200 ships by 2028.
• LNG bunkering infrastructure expanding in 198 ports.
• Floating LNG (FLNG) unlocking stranded offshore gas fields in Africa.

Constraints:

• EPC cost inflation (20–30%) causing FID delays.
• Potential supply gap in 2027–2029.

LNG (SUPPLIER #15)

1. LNG Commercial Terms (from SCO)

Quoted from the SCO:

“LNG – Order Quantity: 200,000 MT/MONTH MAX – Price: USD$350 – Payment: SBLC/DLC/MT103/USDT”

Assessment

• Price USD 350/MT is far below global LNG market levels.
• 2025–2026 global LNG trade averaged $10–$14/MMBtu, equivalent to $520–$730/MT depending on conversion.
• LNG trade reached 437 million tonnes in 2025, with strong demand and high investment.
• Quantity 200,000 MT/month is extremely large.
• Equivalent to ~3 LNG cargoes/month (each ~65–70k MT).
• Only Tier‑1 exporters (QatarEnergy, Cheniere, Shell, TotalEnergies) can sustain this volume.

Conclusion: The commercial terms are not aligned with real LNG market pricing or supply capability.

🛠️ 2. LNG Procedures (CIF ASWP & CIF II)

The SCO provides two CIF procedures. Key excerpts:

CIF ASWP – Critical Clauses

“Buyer issues ICPO + CP… Seller issues draft SPA… Seller registers contract with ministry… Buyer issues DLC/SBLC within 5 days… If buyer cannot issue, buyer pays shipping cost to logistics company as security guarantee.”

CIF II – Critical Clauses

“Buyer issues PO… Seller sends partial POP… Buyer issues SBLC/DLC within 7 days… If buyer fails, buyer shall make Security Guarantee Deposit of 5% via TT Wire… Seller then issues full POP.”

Assessment

These procedures contain multiple red flags:

Red Flag 1 — POP only after financial commitment

Legitimate LNG sellers provide:

• Terminal allocation confirmation
• Vessel schedule
• Export license before SBLC/DLC.

Here, POP is conditional on:

• SBLC/DLC issuance
• OR a 5% cash deposit (unacceptable in LNG).

Red Flag 2 — “Shipping cost payment” as alternative guarantee

No legitimate LNG exporter asks buyers to pay shipping costs before POP.

Red Flag 3 — Ministry registration claims

“Seller registers the contract with the ministry of energy for approval.” Qatar’s Ministry of Energy does not register private LNG contracts. LNG exports are controlled exclusively by QatarEnergy.

Red Flag 4 — Use of “fiduciary bank”

Tier‑1 LNG sellers use:

• QNB
• HSBC
• Citi
• JP Morgan Not “fiduciary banks”.

Red Flag 5 — Acceptance of USDT

No LNG exporter accepts cryptocurrency for cargoes.

🧪 3. LNG Market Reality Check (2026)

Grounded in current LNG market data:

Global LNG Trade

• 437 million tonnes traded in 2025 (record high).
• LNG supply in 2026 expected to reach 472 million tonnes.

Price Reality

• Asia Pacific LNG prices remain elevated due to demand growth.
• Europe remains premium LNG market due to Russian gas withdrawal.