NaturalGas S-curve

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Asian LTC formula for LNG include an S-curve, where the price formula is different above and below a certain oil price, to dampen the impact of high oil prices on the buyer, and low oil prices on the seller. See NaturalGasPricing.

  • Dampen JLC (Japan LNG Coctail) volatility that comes from the indexation to JCC.
  • Protects sellers when oil price is low and buyers when the price is high.
  • Consumers inclined to switch to gas due to lower volatility.
  • S-curve is defined by its slope (LNG price relative to reference oil price).
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