22NOV2019 - NEWS - JCC-Indexed LNG Contracts May Lose $15bn Value Post IMO 2020: WoodMac
LIQUEFIED natural gas sellers with contracts linked to price movements of sour crudes may lose up to $15bn in unearned revenue once the International Maritime Organization’s 0.5% sulphur limit on marine fuels takes effect.
Wood Mackenzie, the energy and commodity research agency, projected that producing LNG projects in Australia may account for more than half of these lost earnings.
As with others fixed on offtake prices tied to the Japan Crude Cocktail, these projects would potentially lose unearned revenues. JCC is a weighted average price index derived from trades of a basket of mostly sour Dubai and Oman grades imported by Japan.