IEA: A Gas Transaction Center Is Needed in Asia

As a kind of clean energy, gas plays a key role in Asia, especially having great influence on ensuing security of energy usage, synergetic development of economy and environment. However, the influence expanding further needs tighter connection between Asian gas market and global gas market. The report-How to Establish Gas Transaction Center in Asia published by IEA points out that in the future, status of gas in Asia will directly depend on whether pricing accords with supply-demand relationship on the market and changes with it immediately.
 
At present, gas price in Asia is mainly affected by supply and most of contacts are long-term supply contracts. Developed countries hope to sign long-term supply contracts to guarantee energy supply and ensure their own highly economic development. Meanwhile, gas suppliers also expect to receive steady retribution to satisfy with investment and construction of infrastructures including pipes and facilities.
 
In recent years, due to pricing model, gas price in Asia is considerably higher than that in other regions. People show strong doubt to necessity that the pricing model continues existing. For expanding market shares, gas should have more price competitiveness in imported regions or countries, compared with other energy. But, a kind of mechanism marketizing and transparentizing gas pricing does not exit in Asia. In short, Asia is lack of a platform to organize gas trading. 
 
The report points out that Asia needs to establish a gas transaction center. Bring gas pricing back to market so that ensure validity and transparency of price, in case of being interfered by policies and improving confidence of investors, which is quite vital for capital-intensive industry.   
 
IEA: A Gas Transaction Center Is Needed in Asia
 
Sep 23,2016
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