Reuters: IEA sees Asia paying less for LNG as prices converge

Asia should benefit from the convergence of global liquefied natural gas markets amid signs of change for its pricing structure linked to oil, the head of the West's energy watchdog told Reuters on Thursday.

Gas has historically been pegged to the oil market through long-term contracts, because both fuels used to be produced by the same exporters and were often used in the same industries.

But a rising disconnect between gas and oil suppliers and new two-way contracts between exporters and customers based on regional gas exchanges means gas is more likely to take its cue from specific regional prices rather than global benchmarks, such as oil's Brent crude. MORE