Spot market for Asian LNG gaining momentum, traders say

Retreat from oil indexation fuels emergence of regional price markers


For more than a decade, energy traders and analysts have anticipated the emergence of a liquid market for natural gas in Asia, with regional price markers and actively traded derivatives contracts. Proponents of such a shift say it would allow market participants to price and risk-manage their physical gas exposure more precisely and effectively than they can today. Yet while Europe has developed a thriving, hub-based market over this period, the Asian market has remained virtually unchanged. It