In this briefing:
- NextDecade’s Oil-Linked Contract Offering Signals More Hurdles Ahead for US LNG Project Developers
- UK Trip – Wake up to Deflation Risk
- Silent Alarm: Promoters Flock To Pledge Shares
1. NextDecade’s Oil-Linked Contract Offering Signals More Hurdles Ahead for US LNG Project Developers
NextDecade Corp (NEXT US) recently announced that it started offering long-term contracts indexed to the crude Brent in order to attract more LNG buyers. This follows the agreement reached by Tellurian Inc (TELL US) with Vitol back in December to index a long term contract with the Asian LNG price benchmark JKM. While typically US LNG projects are indexed to the Henry Hub, declining crude oil and LNG prices seem to have diminished the appeal of the Henry Hub pricing compared to the oil indexation. This insight takes a look at the latest trends in the LNG markets to assess which companies are taking the lead in the race to bring to FID in 2019 their proposed LNG projects.
Exhibit 1: NextDecade adds Brent indexation to its commercial offering
![](https://static-prod.smartkarma.com/images/media/000/079/853/original/Picture1.png?1550843678)
2. UK Trip – Wake up to Deflation Risk
By Bo Zhuang, Chief China Economist
- London-based investors are turning cautiously optimistic on China’s growth outlook amid the latest easing measures in January
- There is still little awareness about the rising deflation risk
- Interest in the trade war has subsided
3. Silent Alarm: Promoters Flock To Pledge Shares
In 2009, when Satyam Computers case unraveled it was revealed that a large portion of promoter shares were pledged with lenders and a substantial portion of that was sold by lenders. Responding to the situation then the Market regulator Securities and Exchange Board of India (SEBI) asked all the listed companies in the country to make disclosures on shares pledged by promoters within seven days and also amended the relevant regulations for the same.
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