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Pricing Natural Gas: The Outlook for the European Market
January 28, 2008. Long-term gas supply contracts contain price formulae, in which the gas price is usually linked to the price of another commodity, or to the spot price of gas in a particular market. This CIEP Energy Paper addresses the question whether the traditional form of oil-based price indexation is sustainable. It discusses the considerations that the market players may have in favour of one or the other form of indexation, the external forces that may influence the choice of indexation in the short and longer terms and the consequences of change. Read more »