Resource
What does Netback mean with respect to LNG?
The effective price earned by a producer of LNG at a particular point. It is based on the market price minus charges for delivering the natural gas from one point to another market. For example, if the price of LNG in Japan were $6.00/MMBtu, and the cost to ship LNG from Sabine Pass to Japan were $2.50/MMBtu, then the netback at Sabine Pass would be $6.00-2.50 = $3.50. NGI’s various netback price calculations that are listed in LNG Insight show the maximum netback for a particular location from both Asia and Europe.
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