Asian buyers are turning to upward quantity tolerance (UQT) and 2018 annual delivery programs (ADP) to replace supplies lost because of delays in the start-up of some new trains and projects.
In Japan, buyers are asking to advance their ADP volumes in a bid to reduce their contracted volumes later in the year. Faced with an exceedingly cold winter, Japanese importers have also asked to take more volumes in the first quarter of this year from their 2018 ADPs under contracts that allow some flexibility. In theory, buyers can increase their UQT only after their ADP begins with the new fiscal year on April 1. Buyers that have exercised UQT this year are probably customers of projects that have been delayed, like US’s Cameron and Freeport, which are now expected to start up in 2019.Please fill out the following form to access the full article.