The Spot LNG is defined as cargoes delivered the Liquefied Natural Gas (LNG) through contracts of four years or less that refers to the trade of large physical cargoes or parcels in one-off transactions for near-term delivery. The Spot LNG market accounts for a small portion of overall LNG transactions but plays a critical role in setting prices for most other transactions. The International Group of Liquefied Natural Gas Importers defines “true spot volumes” as those delivered within three months of the transaction date. Prices in the spot market can be fixed or tied to oil or gas.

Related Definitions in the Project: The Element and Substance; Procurement