Hybrid pricing formula idea floated for Canadian LNG exports

摘要

A hybrid pricing formula which combines hub-based indexation and oil-indexation could be in the offing for western Canada’s LNG export projects, according to industry sources on Friday. Gas Matters Today understands that a new pricing structure is being examined by one of western Canada’s LNG export projects and would index partly to the North American gas hubs, and partly to Japanese LNG JCC (Japanese Customs-cleared Crude), the average price of LNG imported into Japan, which is predominantly oil-linked.