| Asia is expected to become the world's second-largest gas market by 2015. And yet this market is dominated by long-term contracts in which the price of gas is linked, or indexed, to that of oil. In recent years, this has helped keep Asian gas prices much higher than those in other parts of the world, leading to serious questions about the sustainability of the system and its effects on Asian competitiveness.
In a new report, the International Energy Agency shows how the Asia-Pacific region's natural-gas market can evolve from one in which prices are linked to oil to one featuring a more competitive and dynamic network of trading hubs in which prices better reflect local gas demand and supply...............................................Full Article: Source
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