US LNG Buyers Seek Alternatives to Henry Hub Pricing, Caturus Says

According to Sina Finance, Caturus Chief Legal and Compliance Officer David Long said U.S. liquefied natural gas buyers are looking for alternatives to the traditional Henry Hub-linked pricing mechanism. Speaking at the International Gas Technology Conference in Bangkok, Long said the traditional LNG contracts that have financed U.S. Gulf Coast LNG projects and are linked to Henry Hub prices are not wanted by everyone. He said some buyers do not want their businesses affected by swings in the benchmark price, while traditional contracts remain important for project financing because lenders prefer standardized contract structures that have been used for a long time.