Since 2011, the size of the global LNG industry has more than doubled; bringing in dozens of new firms and allowing smaller players in Asia to grow. 20% of the LNG imported into China alone in recent years came from smaller traders.
However, a sharp increase in spot LNG cargo prices, from $15–20 million two years ago to $175–200 million now, has had a seismic effect on physical trading activity for many smaller companies.
In Asia, a trading executive told Reuters that some smaller players had closed their operations in Singapore’s financial center; while some Korean companies and second-tier Chinese traders reduced their activities as financing became more difficult to come by. The market is currently strongly biased in favor of those with sizable, diverse portfolios and healthy balance sheets.
Current market conditions are substantially in favor of participants with sizable, varied portfolios and sound financial positions, such as oil majors Shell (SHEL. L), BP (BP.L), and TotalEnergies, as well as significant trading firms Vitol, Trafigura, Gunvor, and Glencore (GLEN.L).