Exclusive-LNG sellers seek credit letters as gas price spike stretches credit limits By Reuters – Investing.com

Exclusive-LNG sellers seek credit letters as gas price spike stretches credit limits By Reuters – Investing.com

By Jessica Jaganathan

SINGAPORE (Reuters) - Sellers of liquefied (LNG) are asking for credit letters from companies they deal with to guarantee they can pay as the global spike in gas prices takes them beyond their credit limits, industry sources said.

Defaults have been rare in LNG, which has typically relied on big players with deep pockets, but over the last two-to-three years, around 20-to-30 companies have entered the market, at least doubling the number of relatively small players.