Ineos aims to close US-Europe energy costs gap
The chemicals heavyweight is trying to bring to LNG the model it has already rolled out in petchems feedstocks
Indexation asymmetry is one of the factors put forward as to why more European gas importers do not sign up to long-term LNG contracts, preferring instead to take their chances either on the seaborne spot market or buying post-regasification on pipeline trading hubs. The customers of these importers—be they distributors, generators, or large industrial and commercial (I&C) end-users—demand TTF indexation because that is what their competitors have. And a relative scarcity of LNG term sellers willing to sell on a TTF basis means potential European buyers baulk at managing possibly decades of basis risk between an import contract on another index back-to-back with sales agreements on the T
Also in this section
23 April 2024
Cheaper Russian barrels and lower overall crude prices have helped cut key oil consumer’s import bills in election year
22 April 2024
Pursuing three different goals as part of the same package may mean achieving none of them
22 April 2024
Beijing’s renewed targeting of NOC management could threaten investment
19 April 2024
Cairo’s currency problems have hindered investment, but Pharos sees considerable potential as Egypt emerges from crisis