Stronger Linkage to Market Prices Continued in Last 14 Months, Says Cedigaz

The consolidated trend toward a stronger linkage to market prices continued ‘with an equal strength’ in the last 14 months, according to the last report of CEDIGAZ, the International Centre for Natural Gas Information.

‘Negotiations of Gazprom contracts (or arbitration decisions) representing a volume of at least 60 bcm/yr (one third of the volume of Gazprom contracts listed in the Cedigaz database) have been reported. The result has been a decrease in prices, with price discounts in the range of 10-20% often accompanied by a reduction of TOP obligations,’ reads a note released on Wednesday.

According to the international body based in the suburbs of Paris, the negotiations of the last months culminated with the recent announcement of the deal between Eni and Gazprom.  

‘But Gazprom was not the sole provider to face tough renegotiations of its long-term contracts, all major European suppliers were either brought to the negotiating table or subjected to arbitration,’ explains the press release.