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Energy markets and natural gas price formation

image of Energy markets and natural gas price formation

Owing to the specificities related to natural gas transportation (box 2), the natural gas market is fragmented into three main regional markets, namely North America, Europe and Asia and Oceania, with specific price formation mechanisms and different benchmark prices in each region. The reference prices are, respectively: (1) the spot price at Henry Hub (Louisiana, United States) for North America; (2) the average import border price in Europe; and (3) the liquified natural gas (LNG), import price in Japan, mainly used throughout Asia and Oceania.

Sustainable Development Goals:
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