LNG market to break oil-linked gas price
The expanding global liquefied natural gas (LNG) market is likely to erode traditional oil-linked gas prices, if not break them completely, the Energy Charter Secretariat said on Wednesday
According to general secretary Andre Mernier, the global LNG market is expected to reach 450 billion cubic metres (cm), or 343 million tonnes of LNG, in 2015, compared with around 270 billion cm in 2008, with LNG volumes set to equal pipeline gas volumes in the next 20 years. “These trade dynamics also bring pressure for more flexibility, or will even break the link between oil and pipeline gas in long-term contracts,” he told the LNG Global Congress conference. A larger LNG market is expected to diversify supply sources and compete with pipeline supplies. Oil-indexation is already under pressure, with European hub prices significantly below these prices, making the traditional contracts eco
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