As Global Demand for LNG increases, new market participants are finding they lack the right CTRM capabilities

As the war in Ukraine continues to rage, Russia has retaliated against the European governments that have supported Ukraine with arms shipments by throttling natural gas supplies or entirely shutting down (and possibly sabotaging) pipeline flows.  To address these shortfalls in supply, Europe has turned to the global LNG markets to help not only with immediate needs but also to fill storage levels as the continent moves into winter. This increased demand for LNG has pushed natural gas prices to record levels, with key European hubs, such as TTF, trading over $100/mmbtu this year, while simultaneously driving up prices in the Asia Pac region as buyers there compete for critical supplies. These huge price increases (as much as 400% compared to similar periods last year) have drawn new players into the market, particularly marketers and utilities seeking to replace or at least reduce their dependencies on unreliable Russian supplies. Unfortunately, many of the companies that have attempted to move into the global LNG market have discovered they lack the appropriate IT systems required to manage the purchasing, tracking, and accounting of LNG volumes. In particular, their CTRM systems are proving inadequate in being able to address the many complexities associated… continue reading

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