Contracts
Long-term contracts represent the greatest share of contracts signed, but their time duration has been reduced over time. The average length of contracts is cyclical, meaning longer term contracts are signed for new projects to guarantee project economics, while expiring contacts are replaced by shorter ones.
2021 outperformed 2020 in terms of volumes of signed contracts.
- An increasing number of 10-year contracts is observed, pushed by trading companies and portfolio players.
- Pricing formulae of recently signed contracts are linked to a variety of indices: oil, JKM, TTF, AECO, mixed.
- Portfolio players and trading companies play a growing role in new contracts.
