Long-term Pipeline Gas Supply Contracts: Towards More Flexibility and Spot Indexation?

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Cedigaz released its updated long-term pipeline gas supply contracts in Europe database.

Unsurprisingly, given the present context of uncertain demand and looming gas bubble, with Europe as a whole well (over?) contracted in long-term supply contracts, the present update shows little difference from the previous, one-year old version. Indeed, no new contract was added to the database.

Given the ever growing market uncertainty, the buyers focus on increasing the flexibility of their existing contracts (for instance by lowering the minimum TOP volume or shortening the renegotiation periods) and pressing for more gas indexation (which usually comes with reduced volume flexibility).

 

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