What is a Rollover Auction?
Rollover auctions are additional rounds offered for the same LNG capacity product if the capacity remains unbooked or only partially booked after a previous auction round. For Shippers, these rollovers create new opportunities to secure capacity with each round functioning as an independent auction, offering flexibility to adjust bids based on prior outcomes or market conditions.
Key Considerations for Shippers:
1. Each Rollover Auction is Independent: Each rollover auction is a completely new event, meaning any previous bids or results don’t carry over or affect the next round. This setup allows Shippers to start fresh with each auction and adapt their bids as needed without any influence from earlier rounds.
2. Volume and Price can Change: While rollover auctions often feature the same volume and product, the Operator may adjust certain details, like the amount of capacity available or the starting price. Checking these details in each round is important to see if any changes might affect your bidding strategy.
3. Adjusting Your Bidding Strategy: Rollover auctions allow Shippers to re-evaluate their approach. If you were outbid in a previous round or decided not to bid, you now have another opportunity. You can base your new bid on the results of previous auctions or on the current market conditions, whether that means raising or lowering your bid depending on the competition.
4. Mind the Timing: Rollover auctions often come with quicker deadlines. It’s important to stay aware of these timelines so you don’t miss out on any auction rounds. Keeping notifications on can help ensure you’re ready to place bids when needed.
How to Identify if an Auction is a Rollover?
After an auction closes, you can determine whether a rollover has been activated by checking the auction details.
If a rollover is triggered, the following information will be displayed:
If you open the details of an auction that has already rolled over, you will see the following:
This way, you can easily recognize if an auction is part of a rollover process.