Geographical Arbitrage for Liquified Natural Gas (LNG) Exports from the US

In the LNG market, arbitrage can be defined as a strategy of diverting a physical cargo from one market to another which offers a higher price. Price differentials can occur between regional markets due to different pricing structures and imbalances between supply and demand which allows traders to exploit and capitalize on. In this example, we look at the key variable costs to determine if the arbitrage window to Asia is open or if it is more profitable to ship a cargo from the United States to Asia than to Europe

Pre-requisites:

You may contact your Refinitiv's representative to help you to access the products below For RDMS, the credential is required, to generate the API key, follow the instruction in the quickstart guide  For RDP libraries,

• Refinitiv Data Platform (RDP) library installed.
• Eikon Desktop or Refinitiv workspace is running on your machine|
• The Access Credential is required to use RDP libraries. For more detail, please check RDP libraries - Access Credentials.

Required python libraries and their version:

you may download requirements.txt from this repo then use the command pip install -r requirements.txt to install required libraries

• refinitiv.dataplatform 1.0.0a10
• datetime 4.3
• pandas 1.3.1
• requests 2.25.1
• matplotlib 3.4.2

Example output