Bloomberg: Europe Gas-Market Push Strengthens as Oil-Link Widens

European natural gas buyers are pushing to renegotiate long-term supply contracts as the premium of oil-linked fuel to that on hubs rises to the most since 2009.

GDF Suez SA (GSZ), France’s largest gas company, plans to agree new supply terms with OAO Gazprom (GAZP) next year, Vice Chairman Jean-Francois Cirelli said in a June 3 interview. Gas for next month on Germany’s biggest hub costs 32 percent less than under long-term agreements linked to oil yesterday, the biggest gap since March 2009, according to Bloomberg’s gas contract calculator.

More than 50 percent of Europe’s agreements are now linked to hub prices, according to Cirelli. That has helped boost trading on regional hubs, with German volumes gaining 42 percent last year and buying and selling in the Netherlands climbing 10 percent, according to Trayport Ltd. data.
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