Brokerage

As a consequence of our involvement in the different energy markets, in SH we are constantly exploring new fields for being useful to our clients.

In this line, we have started brokering LNG cargoes, activity which will likely increase quickly and intensively in the near future, in parallel to the increasing liquidity and depth of the LNG spot market.

The Iberian Peninsula gathers 4 operating LNG terminals and 3 more are projected or already under construction. LNG trading, being already significant, will certainly boost in the next years. Market forces will naturally push the existing restrictions and barriers to an active LNG trading to be cleared and volumes traded will rapidly increase.

However, the size of the relevant market in the case of LNG is not much different than worldwide. With three main consumption poles (Japan, the States and Southern Europe), the production is still centralizaed in the Middle East, Indonesia and Northern Africa, with increasing importance of Central Africa and the expected quite next significant contribution of Northern Europe and Central and South America.

Transparency of the market will soon become a must. Players will require it and will have to make their own concesions in this field. Still there are a lot of pending matters to dvelop, mainly with respect to uniform and standardization: contracts, confirmations, qualities, delivery conditions, slot requirements, flexibility on destinations, etc.

 

 

 





We in SH believe in markets and are ready to work for developing incipient ones. This is the case of the LNG market. We are ready to invest in improving its transparency. This means monitoring the trades, the vessels, exploring and presenting the arbitrating possibilities between different geographical areas, between LNG and NG and maybe also between LNG and other alternative fuels, the position of the different players, incidences and prospectives in production and liquefaction, levels of demand and any other driver of the market.

And we think that a good way of pushing the market to evolve is brokering it, not only watching at it. Information and research may not be enough. SH takes one step forward and had started brokering the LNG market, pretending to actively contributie to its quicker development.

Information on the LNG trades map, closing prices, recent deals and LNG actual flows is continuosly updated in our web page, within the restricted area accesible by clients or suscribers.

Confidentiality over the positions, bids, offers, willings and closed deals of the different players is 100% assured. Otherwise, we would not last in the market. Our role as brokers does not interfere at all with our research and tailored services areas. SH, when brokering, provide to its clients on an equal basis all the relevant market information at its hand. At the same time, SH publishes the market information without identifying players or positions underlying.

Our intention is to improve transparency though without favouring or harming anyone.

At the same time, SH never accepts any mandate or demand of tailored service from a client that could affect its independence or under which its indpendence could be questioned.