26 April 2024
China’s gas demand spike raises likelihood of full oil indexation for Europe’s pipeline gas supply
Publication date: 15 June 2011
Gas Strategies Group
10 Saint Bride Street
London UK
EC4A 4AD
ISSN: 0964-8496
Twitter @GasStrategies
Editorials
Subscriptions
Soaring Chinese demand for natural gas will increase competition for Central Asian supplies, raising the likelihood that suppliers to the EU will maintain oil indexation as a contract-pricing mechanism, Deutsche Bank forecast. “Both China and Europe will increasingly draw upon a common source of supply—central Asia. We believe this will eventually lend support to European market prices as well as the principle of oil-indexation,” Adam Sieminski, chief energy economist for Deutsche Bank said in a report published late Tuesday.