November 17, 2017

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LNG market entry is hard. Here's why.

February 15, 2018

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FEATURED

Our Role in LNG Procurement for New Market Entrants and Sellers

 

 

LNG Sellers value our role in introducing genuine Buyers who are serious about LNG procurement.

 

Each day, Sellers get multiple emails expressing interest in purchasing LNG. Sellers typically don’t have time or resources to run due diligence on every one of these potential opportunities and it becomes difficult to identify genuine Buyers. 

 

Since we have strong professional relationships with marketing and trading managers at major LNG Suppliers and Trading houses, once we have vetted a real Buyer, we are able to discuss in person, or at the very minimum over the phone. 

 

We perform our own rigorous due diligence on Buyers, which results in only a small number of Buyer introductions to Sellers - such is the nature of the industry. If we ever present a poor quality Buyer, our reputation with Sellers will be damaged. Therefore we reject most incoming "opportunities", since they fail to meet our initial criteria of being an ultimate buyer, with firm terminal access.

 

So, if the Buyer’s goal is:

1. To be seen as a genuine Buyer by Tier 1 Sellers; and 

2. To enter into a low key bilateral negotiation with such Sellers,

 

then, ELS will make an endorsement to Sellers only once the Buyer has passed our internal assessment criteria: 

1. They are the ultimate Buyer (not an intermediary)

2. They have excellent creditworthiness

3. They have firm irrevocable access to a SOE receiving terminal or their own terminal

 

An advantage of this approach, is that it helps Buyers enter the market in a disciplined manner, following the unique norms of the LNG industry - which sees itself as somewhat more gentile compared with oil and coal. A facilitated market entry also limits disclosure of KYC information to a small number of Tier 1 Sellers. 

 

For Sellers, it allows time and attention to be granted only to genuine, pre-screened opportunities.

 

 

For more information, please contact:
Ken Chan, Managing Partner, Equity Lifting Solutions Pty Ltd
ken.chan@equityliftingsolutions.com
+61405990999 

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