Growing pressure to de-link European oil and gas prices

Gazprom’s latest renegotiations of its long-term gas supply contracts resulted in lower prices for the buyers, but no attempt to move away from oil indexation. But with spot gas prices in Europe forecast to remain depressed, the pressure to de-link oil and gas prices continues to grow. Vanya Dragomanovich reports

Long-term gas supply contracts

After a protracted tug-of-war over the pricing of long-term gas supply contracts that included the threat of arbitration, Germany’s E.On and Russia’s Gazprom agreed in early July that the latter gas giant would lower its contract prices by 7–9% but otherwise leave the pricing structure of the contract intact. Under the retroactive deal, Gazprom also said it would pay E.On €1 billion in July and August.

While the current round of price negotiations between major suppliers such as Gazprom (Europe

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Chartis Energy50 2023

The latest iteration of Chartis' Energy50 2023 ranking and report considers the key issues in today’s energy space, and assesses the vendors operating within it

2021 brings big changes to the carbon market landscape

ZE PowerGroup Inc. explores how newly launched emissions trading systems, recently established task forces, upcoming initiatives and the new US President, Joe Biden, and his administration can further the drive towards tackling the climate crisis

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here