South Lamar Boulevard in Austin, Texas during 2021's cold weather
Oil and gas price divide raises threat levels, part 2
LNG projects need the certainty of long-term contracts, but Henry-Hub–linked deals put buyers at significant risk
Companies that sign long-term energy contracts tied to volatile price indexes rather than cost-based formulas have learned they could face bankruptcy under certain conditions. During the energy crisis created by Russia’s invasion of Ukraine, German gas importer Uniper had to seek protection as prices spiked. The German government took 99% ownership in 2022 to keep gas flowing. Those funds are being repaid, but the financial collapse the firm confronted highlights the threat of signing commodity-index-linked contracts. The risks have not stopped LNG buyers from gambling, however. Jason Feer, global head of business intelligence with consultancy Poten & Partners, provided a useful analysis
Also in this section
21 April 2026
After overcoming a COVID-induced demand collapse with several years of successful market management, geopolitical events have conspired to provide the pact’s biggest test to date
21 April 2026
The regime’s policy of using nuclear ambiguity as a deterrent may have failed but it has realised it has other cards to play, while its neighbours are reappraising their approach to security
21 April 2026
As the global energy system undergoes a fundamental realignment, Algihaz Holdings has established itself as a critical player bridging conventional energy markets and the next generation of renewable infrastructure.
21 April 2026
The 25th WPC Energy Congress is taking place from 11-15 October 2026 at the Riyadh Front Exhibition & Conference Center.
