LNG AND NATURAL GAS

Trafigura is the world’s leading independent trader in one of the fastest growing energy markets. The LNG team is based in Geneva, Houston and Singapore, and supported through 30 regional offices in key actual or potential, import and export countries across the globe. Recently we have also developed natural gas trading businesses in both Europe and the United States. Our LNG and natural gas teams work closely with the LPG, coal, and other energy desks to generate synergies whenever possible and to continually offer the best opportunities to our clients.

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LNG

The LNG market is undergoing a global transformation. LNG supply has expanded rapidly over the past few years as prices have enhanced its competitiveness as a fuel for power and driven broad-based demand growth. Traded volumes also continue to grow as market participants shift from long-term contracts to a more actively traded spot market. With improving price transparency, liquidity and risk management opportunities, increasing numbers of market participants are willing to rely on this growing spot market for security of supply. Trafigura continues to support this LNG revolution while our mission remains to offer counterparties reliable and efficient service tailored to their needs.

We are the world’s largest independent LNG trader, delivering over 6.4 million metric tonnes of LNG in 2016. Our traded volumes increased 53 percent year over year and we expect this market-leading expansion to continue. In the coming years, we anticipate significant synergies to arise with our US and European natural gas desks as market liberalisation continues and the LNG and natural gas markets converge. We have the marketing expertise, financial strength, geographic coverage, and understanding of product flows required to succeed across both of these markets. 



NATURAL GAS

We are in the process of rapidly expanding our European natural gas business with the aim to cover all European markets. At present we have established offices in Geneva and Kiev and have physical trading capabilities in most European jurisdictions. We are well positioned to offer our clients the most flexible, tailor-made solutions across supply, capacity, transportation, storage and financing. We believe that such positioning will be particularly valuable as market liberalisation and the diversification of supply continue.

Trafigura also has a well-established US natural gas business. Our growing physical asset base is at the core of our trading business and we can offer our clients Asset Management Agreements, pipeline transportation, scheduling services and natural gas storage, as well as customised end user and producer services. Our extensive trading experience enables us to be active in all regional markets throughout the United States.

We believe that future arbitrage opportunities arising between LNG and natural gas, combined with Trafigura’s experienced market intelligence, will allow us to develop a unique value proposition to our counterparties and partners in the next few years. 



Infrastructure

We have recently announced a programme of investments in LNG infrastructure as we believe lower cost, modular and flexible assets will provide support in the development of the LNG spot market and for our trading business. We are currently developing a regasification terminal in Teesside, UK. The terminal, once all relevant permits and approvals are in place, will be able to receive the majority of the FSRUs in the global fleet  and allow flexible and low cost access to the liquid UK market. 



White Paper: Fifty Years of Global LNG: Racing to an Inflection Point

Fifty Years of Global LNGProfessor Craig Pirrong probes where he believes the LNG industry is headed as oil-based pricing becomes a relic of the past. His analysis describes a potential revolution in LNG pricing and contracting mechanisms that will relay on trading firms and commodity markets to secure supply and manage risk.



Oil & Petroleum Products