Ineos aims to close US-Europe energy costs gap
The chemicals heavyweight is trying to bring to LNG the model it has already rolled out in petchems feedstocks
Indexation asymmetry is one of the factors put forward as to why more European gas importers do not sign up to long-term LNG contracts, preferring instead to take their chances either on the seaborne spot market or buying post-regasification on pipeline trading hubs. The customers of these importers—be they distributors, generators, or large industrial and commercial (I&C) end-users—demand TTF indexation because that is what their competitors have. And a relative scarcity of LNG term sellers willing to sell on a TTF basis means potential European buyers baulk at managing possibly decades of basis risk between an import contract on another index back-to-back with sales agreements on the T
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