By securing long-term supply, our customers know they can rely on us to meet their energy needs.
In 2018, Trafigura became the first independent energy supplier commodity company to conclude a long-term deal to purchase liquified natural gas (LNG).
Under the agreement with Cheniere Energy, we buy one million tonnes a year of LNG for 15 years, adding a further source of supply to our growing portfolio. We received our first supplies from Cheniere in 2019.
Historically LNG contracts between big producers and buyers came with prices indexed to oil and strict destination clauses. This made the LNG market inflexible and rigid.
However, the growth of US LNG exports has allowed more innovative approaches to evolve, just as security of supply has become more important in global energy markets.
Our agreement with Cheniere also has wider benefits for the LNG industry. Long-term purchase agreements help producers raise finance for expansion projects or to build new plants, further increasing supplies of the fuel.