@techreport{bfa17246370243f2bcfcfa9f0d9ba867,
title = "The Future of Long-term LNG Contracts",
abstract = "Long-term contracts between exporters and importers of LNG increase the debt capacity of large, long-lived, capital investments by reducing cash flow variability. However, long-term contracts also may limit the ability of the contracting parties to take advantage of profitable ephemeral trading opportunities. After developing a model that illustrates these trade-offs, we argue that increased LNG market liquidity is likely to encourage much greater volume and destination flexibility in contracts and increased reliance on short-term and spot market trades. These changes would, in turn, reinforce the initial increase in market liquidity.",
keywords = "LNG, Long-term contracts, investment project leverage",
author = "Peter Hartley and George Mitchell and Cynthia Mitchell and Baker, {James A}",
year = "2013",
language = "English",
series = "Economics Discussion Papers",
publisher = "UWA Business School",
number = "22",
address = "Australia",
type = "WorkingPaper",
institution = "UWA Business School",
}