The depth and breadth of supply are creating changes in the global market for LNG. The key is that companies have adopted a flexible view forward on the LNG supply chain and a change in the types of selling/contracts is emerging. Less important are long term fixed contracts as companies shift to a greater reliance upon short term deliveries based on demand (excerpt below). Commodities traders are forming teams at the producers, leaving independent commodities in search of suitably pried supply.
"In October, for example, Statoil diverted a cargo from its Snohvit LNG project to Japan. It secured a higher price and saved transport costs by using the Northern Sea Route above Russia for the first time. Statoil then went to the market to secure a cargo to satisfy its contract with the original buyer."
"In 2012 nearly 60m tonnes of LNG were traded in the short-term market, according to the Paris-based International Group of Liquefied Natural Gas Importers. That is worth around $36bn, assuming a conservative price of $12.50 pmBtu."