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
16 April 2025
Israel continues to strike new oil and gas concession agreements and gas exports continue to rise, but an overreliance on Egypt remains the big concern
15 April 2025
Loss of US shipments of key petrochemical feedstock could see Beijing look to Tehran with tariffs set to upend global LPG flows
15 April 2025
Australia’s East Coast Gas projections for a supply shortfall have been pushed further out, but the challenge to meet evolving gas demand and the shifting assumptions around the fundamentals remain just as stark
15 April 2025
Long-delayed prospects for onshore LNG production in Mozambique have improved thanks to US financing approval, but security challenges blight way ahead
