Yanna Clara Prade
OIES-Saudi Aramco Fellow
Yanna Clara Prade is a Researcher at Energy Economics Group at the Federal University of Rio de Janeiro and a Ph.D candidate in the same university. She is also a Consultant at Prysma E&T Consultores, a Brazilian consulting firm, with expertise in oil and gas sectors on local and regional markets. As a Researcher she participated in several projects mainly about natural gas monetization and regulation issues in Brazil. Her thesis focuses on the structural changes in the Brazilian gas market and the international LNG market, especially regarding the assets structure and contracts arrangements.
She is an author of a chapter in the book “Atualidades Regulatórias”, organized by the University of São Paulo and Fapesp Shell Research Center for Gas Innovation (2018), about Bolivian natural gas balance and consequences to Brazilian renegotiation contract; and also, a frequent writer on “Boletim Infopetro”, a weekly newsletter developed by the Energy Economics Group, on several energy issues. She participated in the International Visitor Leadership Program (2017), a professional exchange program organized by the U.S. Department of State, about Energy Security.
Yanna Clara Prade holds a M.Sc. in Economics, focused on Energy Economics, from the Federal University of Rio de Janeiro (UFRJ) and a B.Sc. in Economics and Finance from the Brazilian Institute of the Capital Markets (IBMEC-RJ).
The international LNG market is facing a “Great Reconfiguration” (OIES – Corbeau & Ledesma 2016): increasing LNG trades, major structural changes and improved flexibility, due in part to the shale gas revolution in the United States. Short-term trades and spot markets have allowed portfolio players (or aggregators) to take advantage of arbitration opportunities and buyers to build a stronger diversified portfolio and fulfil seasonal demand in their gas markets.
The purpose of this paper is to present a more extensive approach to LNG market flexibility: term contracts (the LNG SPAs), rising demand for flexibility and how the market is adapting, with a special overview on the innovations of the supply side.
This paper aims to answer the following questions:
- Why is flexibility an issue for today’s LNG buyers? What kind of flexibility is needed?
- How are suppliers responding to this demand for flexibility? What are the innovations?
- What are the other obstacles to a flexible LNG market?
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