Traders Positive About European LNG Benchmark

Global LNG traders are optimistic over the prospect of a new European LNG benchmark to serve as an alternative hedging option at a time when Europe’s reliance on LNG over pipeline gas supplies is increasing. The European Commission in October tasked the EU’s Agency for the Cooperation of Energy Regulator to develop a complementary pricing benchmark for the bloc’s LNG imports by Mar. 31, 2023. The new pricing reference would replace the current gas benchmark, the Dutch TTF, which has been assessed as not accurately reflecting the real market price for LNG transactions.