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Will Covid-19 End The Oil Indexation Of Gas Prices? - Davor Sdn Bhd
Will Covid-19 End The Oil Indexation Of Gas Prices?
03-May-2021
May 02, 2021 ( Monday )
The reason behind structurally higher prices in Asia compared to other regions lies in their traditional oil indexation of natural gas. But today, the trends of commoditization and globalization of LNG trade are marking a fundamental shift in gas pricing mechanisms. The LNG trade has become more flexible and does no longer lean on long term commitments, hence, LNG contracts will be priced from its own benchmarks, distinct from oil.
Davor Sdn Bhd
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