LNG buyers are signing long-term supply contracts at an unprecedented clip, and those contracts are increasingly being linked to U.S. natural gas benchmarks such as Henry Hub, according to NGI Senior LNG Editor Jamison Cocklin.

Last year “was a record year” for the signing of these contracts, Cocklin said during a joint webinar with experts from NGI and the London Stock Exchange Group plc (LSEG). “Buyers sought cover from volatility on the spot market, and this was a marked shift from previous years,” he explained.

Global supply concerns triggered by Russia’s invasion of Ukraine caused a spike in prices and volatility, incentivizing long-term contracts linked to relatively cheap U.S. pricing.

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