Gas breaks the oil price link
The proportion of LNG priced on an oil-indexed basis fell to its lowest ever level in 2019
The LNG industry broke records last year in terms of global trade volumes, sanctioned new capacity and the share of spot shipments. An annual survey of wholesale gas prices and price formation mechanisms conducted by lobby group the International Gas Union (IGU) throws up another—the global share of oil and oil products price-linked LNG dipped below 60pc for the first time. The IGU began regularly surveying world wholesale gas pricing in 2005, initially every couple of years and annually from 2012. For much of that period, the story was one of a shift from oil-price escalation (OPE) to gas-on-gas (GOG) competition—mainly because of changes in long-term pipeline gas contracts in Europe as oil
Also in this section
10 May 2024
The US’ contentious LNG permitting pause has prompted criticism from CEOs and wildly differing interpretations from politicians
9 May 2024
Pipeline boosts Canada’s oil industry by widening its export options, making it less reliant on US market and bringing Asia into the mix
8 May 2024
Despite Australia’s first import terminal nearing completion, the prospect of additional regasification projects is far from certain