6.
Economic availability
Oil linked pricing - in the gas market a synonym for
competitive pricing - has proved to be a very successful principle
for constant market development, reasonable pricing, adequate
gas production and the timely development of the natural gas
infrastructure.
By and large it is generally understood that long term contracts
with oil linked pricing will remain the key reference for
gas prices. This should provide producers and investors in
production and infrastructure with adequate securities to
develop and implement new projects. However it will have to
allow for increasing gas-to-gas competition and reflect to
a greater extent seasonal variations in prices and the greater
significance of spot markets.
Using strategic stocks to influence price developments, as
has recently been advocated by the European Commission, is
an attempt to interfere with market developments and would
not yield any tangible results. Past experience, for example
in the United States, shows that the effect on world market
price developments is minimal and not sustainable. In addition,
gas storage capacity is being expanded in line with the development
of consumption. In view of the differences between oil and
gas, there is no reason for and also no sensible way of stockpiling
gas reserves.
