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 October 2024
The Gulf Energy Information Excellence Awards 2024 celebrated the industry's top innovators at a gala in Houston, recognising achievements in categories ranging from digital transformation to sustainability
10 October 2024
Either Donald Trump or Kamala Harris will enter the White House as president in January 2025, and the gulf between their energy and climate policy agendas will have global implications
9 October 2024
Saudi Arabia has made major advances in realising its gas ambitions this year, but challenges remain
