Risk glossary

 

Netback price

A pricing assessment or pricing formula based on the effective price to the producer or seller at a specific location or defined point. For example, liquefied natural gas (LNG) netback prices may be determined by the market natural gas price at market destinations less the cost of pipeline transportation, regasification, waterborne shipping and liquefaction. Crude oil may be priced on the market value of its refined products, or natural gas priced based on the natural gas market price less the cost for delivering from the defined point to the market location.

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