A number of new contracts have highlighted the decline in oil-indexed contracts in Europe and Asia, but several factors are holding back the move towards complete hub-indexation.
A series of price arbitrations, announcements of new hub-indexed contracts and renegotiations of existing contracts have pushed the issue of oil-indexation in gas contracts to the top of the industry’s agenda.
The issue is not a new one. In the United States, the evolution of gas pricing and gas-to-gas competition has already seen hub-indexation become the norm. In Europe and Asia, however, oil-indexation prevails in most contracts. About half of Europe’s gas supplies are hub-indexed, but oil-indexation still dominates long-term imports. In Asia, all imports are oil-indexed.
Log in or register for a free trial to continue reading this article
Already a subscriber?
If you already have a subscription, sign in to continue reading this article.
Sign inNot a subscriber?
To access our premium content, you or your organisation must have a paid subscription. Sign up for free trial access to demo this service. Alternatively, please call +44 (0)20 3004 6203 and one of our representatives would be happy to walk you through the service.
Sign up