The OIES have published a new book. This is the first book in any language to focus exclusively on the pricing of internationally traded gas which is extraordinary given that gas accounts for around 25% of global energy demand and international trade is growing rapidly. Introductory chapters cover some of the theory and historical background to international gas pricing. The main part of the book focuses on developments since 2000 in: North America, Europe, CIS countries, the Middle East, North and sub-Saharan Africa, Latin America and the Caribbean, South East Asia, India, China and Pacific Basin LNG. These are followed by chapters on the potential for globalisation of gas markets and prices, and the Gas Exporting Countries Forum. The concluding chapter considers the extent to which international gas pricing is likely to remain regional, whether gas could become a “global market” – with a global price – akin to the crude oil market, or whether an “OPEC-type” organisation is likely to have a significant influence on regional or global pricing.
The concluding chapter considers the extent to which international gas pricing is likely to remain regional, or whether gas could become a ‘global market’ – with a global price – akin to the crude oil market. A third possibility is whether international pricing is likely to come under the control of a small group of countries, similar to the influence of OPEC in the crude oil market. Overall it is argued that domestic gas price reform will increasingly be driven by international gas prices and that, as gas becomes a more important fuel in the energy balances of many countries around the world, it is becoming increasingly urgent for its pricing to reconnect with economic and market fundamentals, rather than continue to be determined by crude oil and oil product prices, or politically driven subsidies.
Christopher Allsopp, Michael Chen, Hakim Darbouche, Andy Flower, Michelle Foss, James Henderson, Anouk Honore, Laura El-Katiri, David Ledesma, Jane Liao, Simon Pirani, Howard Rogers, Anupama Sen, Jonathan Stern and Katja Yafimava