Caturus, a natural gas exploration and production company, has revealed that American liquefied natural gas (LNG) buyers are actively exploring options beyond the traditional Henry Hub-linked pricing model.
David Lang, Chief Legal and Compliance Officer at Caturus, stated that the conventional LNG contracts tied to Henry Hub prices, which have historically underpinned financing for US Gulf Coast projects, are not universally preferred. Speaking at the International Gas Technology Conference in Bangkok, Lang noted that some purchasers are wary of exposing their operations to the volatility of this benchmark index.
Despite this shifting sentiment, traditional contracts remain crucial for project financing. Lenders continue to favor these standardized, time-tested agreement frameworks, which provide the long-term stability and predictability essential for securing capital in major LNG developments.