The way that the gas is priced has a significant influence on the level of prices and, therefore, on the level of demand, supply and trade. Traditionally, natural gas trade has been limited geographically within three main regional gas markets, namely North American, European and Asian-Pacific. In view of the increasing inter regional gas trade, these price differences, and even more importantly the big differences in the pricing methodologies, would be a principal barrier to the development of new gas supply contracts between sellers and buyers that were historically working in different regional gas markets. In this connection, for sustainable development of the gas industry it is necessary to study the changes in the gas pricing mechanisms, attributed to the different regions and try to predict how could the price mechanisms be evolved in the future.

This seminar has been jointly organized by FEEM and ICCG (International Center for Climate Governance)