The natural gas market is entering a golden age on the back of increasing global demand. So proclaims the International Energy Agency, the western countries’ watchdog. But the natural gas pricing system remains, for now, largely in the dark ages.
Unlike oil, the cost of natural gas varies substantially around the world. In the US natural gas prices are below $5 per millon British thermal units, but in continental Europe they are near $10 per mBtu and in Asia are more than $12 per mBtu.