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What people are talking about

Trafigura nears Multibillion-Dollar German-Backed Loan for LNG. The loan of around USD 3-4bn is said to be linked to Trafigura supplying Germany with LNG as Berlin steps up to secure resources in the wake of the Ukraine – Russia conflict.

Uniper sees bailout cost of losses incurred after the Russian gas supply costs being around USD 53bn.

Engie and Osaka Gas have signed an MOU to explore business collaboration across Asia, under which they will consider and assess opportunities across LNG, electricity trading, risk management and the development of low carbon energy.

China is said to be closing in on Japan as the top destination for Russian LNG in 2022. S&P Global note that China’s Russian origin LNG cargoes are up 30% in 2022 compared to 2021 which are continuing to trade at a below benchmark price, thus making it an attractive option for those nations that can stomach the associated risks. 

Up-tick in Long-term LNG Contract Activity Drives Demand for Marketing & Origination Talent

• Buyers scramble to lock in long-term LNG contracts in 2022

• APAC LNG hiring activity driven by demand for marketing and origination talent

Volatility in global gas/LNG trade for 2022 has been at its highest in recent history sending markets into a frenzy and pushing prices to record heights as buyers scrambled to pivot away from Russian gas and secure alternative supplies. With LNG physical cargo prices this year trading at up to 10X their usual rates in comparison to previous years, dozens of smaller credit strapped traders have been squeezed out leaving a vast potion of the pie to the big league i.e. Oil Majors, Utilities, Producers, and top-tier traders.

​Evolving landscape of global LNG trade

This year has brought a dynamic shift in global LNG trade flows as we witness Europe rise to swallow up most of the demand for spot LNG cargoes, paying high premiums to secure the sub-zero fuel for their short-mid-term energy security requirements ahead of winter, whilst Asia Pacific regional spot trading experiences a dip in activity as price sensitive buyers opt against purchasing expensive spot cargoes in favor of securing more economical long-term deals to ensure stable supply. Europe, a market which in recent times has been adverse to long-term LNG contracts in preference for shorter-term deals suited to energy transition schedules, is now having to reassess its status-quo – Germany recently agreeing a 15 year deal with Qatar Energy/ConocoPhillips to supply up to 2 MTPA. With competition heating up to secure supplies amid a worsening supply outlook and volatile spot prices, buyers are flocking with renewed potency to negotiate long-term agreements, most recently with China’s Sinopec signing one the of largest and longest SPAs with Qatar Energy to supply 4 MTPA over 27 years.

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Current APAC LNG hiring themes

The up-tick in APAC mid-to-long term SPA activity, insofar as relates to dwindling spot trade, has also created an increased demand for Marketing & Origination talent in the region, which has been especially prevalent amongst the US producers, Oil Majors, and Traders. US producers, NextDecade and Mexico Pacific, have recently been on a push to expand their equity marketing capability in APAC with several hires this year, primarily targeting JKC (Japan, Korea, China) markets. Top-tier traders including Vitol, have also been beefing up their marketing and origination teams in the region with a particular focus on North Asian markets.

What we are working on:

• LNG Marketing Manager (LNG Producer)

• LNG Portfolio Manager (Oil Major)

• Head of LNG Analytics (LNG Producer)

• LNG Contracts Manager (LNG Producer)

Market Moves:

• Sophie Tan, former Managing Editor at Poten & Partners (HOU), returns to Singapore to join NextDecade as Director, LNG Marketing – Asia.

• Teresa Dyar, former Director, LNG Origination and Business Development – Asia at Uniper Global Commodities, joins Chevron in LNG Origination.

• Lene Wu, former Structured Trader at Pavilion Energy, joins Mexico Pacific as General Manager – LNG Marketing.

• Ringo Tan has joined Maersk Oil Trading as a Business Development Manager (Renewables and Biofuels), previously Renewables Feedstock Supply Manager at Neste.

• Matthias Soreau, former Head of Gas & Power Trading APAC at ENGIE (Singapore) relocates to Tokyo to join EDF Trading as Head of Power Trading, Japan.

• Ghassan Matta, former Head of Hedging and Portfolio Optimization at Pavilion Energy (Singapore) relocates to London to join ICBC Standard as Head of Gas & Power Trading.

• Tetsuro Toyoda, former Vice President – LNG Trading at KE Fuel Trading (Singapore) promoted to Senior Adviser, LNG Trading.

• Keiko Usami Shibata, former Head of Environment R&D Office at Mitsubishi Corporation (Japan) joins BP Japan as Hydrogen Commercial Lead Japan.

• Shun Ling Yap, former Senior LNG Analyst at TotalEnergies (Paris), returns to Singapore to join Mexico Pacific as Principal Analyst, LNG Marketing.

• Vincent Nguyen, former Portfolio Quantitative Analyst at Novatek Gas & Power (Singapore), joins Chevron as Quantitative Analysis Team Lead.

Sami Jacobs

Consultant

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+65 3165 0710

sami@aurexgroup.com

EA 18S9493 | R2092031