| Popis: |
This chapter illustrates the progressive transition in European gas price formation from dominance of oil-related pricing to a situation in 2015 where nearly two-thirds of gas in European wholesale markets was sold at hub prices. It argues that the main gas hubs in Europe are already well integrated, and in general correlation is high and continues to improve. In this context, any buyer signing a new, or renewing an existing, contract must base the price in that contract on some form of hub price. Exactly which hub, or a combination of hubs, and whether an average of day-ahead or month-ahead prices and over what period, will be matters for negotiation, but the principle of hub price formation is established. |
