1 June 2019
Oil's volatility hastening decline in oil-indexed LNG pricing
The pricing of often decades-long liquefied natural gas (LNG) contracts is becoming more unpredictable as a result of oil price swings
Driven by rising supply and expansion in export capacity from Qatar, Australia and more recently the US, the diversification of LNG supplies is driving an evolution of the contractual terms through which it is sold. Buyers now have greater bargaining power when negotiating contracts, and with the recent volatility in oil prices, there is extra uncertainty about what level of oil-indexation will be required in new contracts. Ultimately, it seems certain that sellers will look for alternative ways of selling their contracted volumes. Since the LNG industry's birth in the 1960s, when natural gas started being used in Europe and North East Asia as an alternative to oil products for power genera
Also in this section
17 February 2026
The 25th WPC Energy Congress, taking place in Riyadh, Saudi Arabia from 26–30 April 2026, will bring together leaders from the political, industrial, financial and technology sectors under the unifying theme “Pathways to an Energy Future for All”
17 February 2026
Siemens Energy has been active in the Kingdom for nearly a century, evolving over that time from a project-based foreign supplier to a locally operating multi-national company with its own domestic supply chain and workforce
17 February 2026
Eni’s chief operating officer for global natural resources, Guido Brusco, takes stock of the company’s key achievements over the past year, and what differentiates its strategy from those of its peers in the LNG sector and beyond
16 February 2026
As the third wave of global LNG arrives, Wood Mackenzie’s director for Europe gas and LNG, Tom Marzec-Manser, discusses with Petroleum Economist the outlook for Europe’s gas market in 2026
