While not yet a watershed moment for global LNG pricing dynamics, another Qatari LNG supply deal was inked using a mechanism that deviates from the traditional oil-link, once the standard for Qatari LNG.
Both of Qatar’s LNG producers – Qatargas and RasGas, which together make Qatar the world’s single largest LNG exporter with about a third of the global market share – have signed supply contracts in recent months with non-traditional pricing formulas. RasGas this week signed a flexible supply deal with Germany’s E.ON to ship up to 0.5mn tons/year over three years to the UK’s Isle of Grain terminal. Volumes will be sold at the UK’s National Balancing Point (NBP) prices, MEES learns. (CONTINUED - 615 WORDS)