Breaking the chain

Gas buyers in continental Europe are putting pressure on wholesalers to move away from the traditional method of pricing gas contracts, which links the price of gas to the price of oil products such as heavy fuel oil or gas oil, in favour of gas-on-gas competition. Despite structural obstacles, they are beginning to meet with some success.

End-users argue that the historical rationale for contractually linking gas and oil prices is now redundant, and that the gas price should be set according