My Axios colleague Amy Harder explains a pivotal moment in the global gas trade...
We may be at a turning point in the natural gas export market.
What's happening: Exxon Mobil just agreed to renegotiate its contract to sell liquefied natural gas to India's Petronet LNG, Reuters reports. Experts say it was one of the first — if not the very first — instance where a supplier of LNG exports slashed its prices to keep a contract.
Why it matters: It's the first sign of how the natural gas export market, poised to be in a glut, is transitioning from a seller's to a buyer's market.
"I think it is likely that this will not be a one off, and other contracts will come under pressure in the years ahead as well," Tim Boersma, director of natural gas export markets at Columbia University's Center on Global Energy Policy, told Axios.
"The elephant in the room will be how negotiations play out with traditional markets in Japan and Korea, and especially the Chinese national oil companies," said Saul Kavonic, an analyst with energy consultants Wood Mackenzie, per the Reuters report.