BAKU, Azerbaijan, June 4. The influence of short-term contracts is increasing in the structure of the global gas market, the CEO of MVM CEEnergy, Gábor Orbán said at the Baku Energy Forum, Trend reports.
“The share of LNG (liquefied natural gas) in supply is growing, and the influence of short-term markets is increasing. Short-term markets are becoming increasingly important, while traditional long-term contracts and regional pipeline infrastructure remain critical elements of supply. Long-term contracts provide predictability, investment security, and, of course, are crucial for both buyers and sellers,” he said.
Orbán noted that the European gas market remains fragmented. There are supply shortages, geopolitical and regional changes in demand patterns.
“If you remember, when the decline in Russian pipeline gas supplies started, there was an initiative to create a pan-European LNG strategy. Unfortunately, it was never implemented,” he said.