how are natural gas contracts priced
how gas will be priced and traded internationally in the future. Th e international gas trade is dominated by a reference pricing mechanismâoil indexationâthat originated in Europe in the 1960s but is under growing pressure there, bringing into question how natural gas may be priced in the future, not only in Europe, but in Asia and beyond. Historically, international trade in gas was quite limited, as gas was produced
of these markets rested on increasing international trade in natural gas that was contractually based on linking gas prices to oil product prices for both pipeline gas and its liquefi ed natural gas (LNG) counterpart. Th e United States, by contrast, pioneered commodity markets based on hub trading.