Pricing pressure

Gas pricing needs a long-term perspective

A steep decline in prices of natural gas is a cautionary tale of second-guessing demand-supply dynamics in a globally traded commodity. Prices of global gas and liquefied natural gas (LNG) have plunged and now trade below oil parity, meaning it is now cheaper for users to burn gas rather than oil. Prices of Dutch TTF, a European benchmark, US benchmark Henry Hub, and spot LNG prices have dropped by over 70 per cent from last year’s record levels. The price of spot LNG, a key fuel source for Indian businesses, soared 40-fold from a low of $2 per million mBritish