Bloomberg: RWE, BG Group Officials Disagree on Setting Natural-Gas Prices

Officials from RWE AG, Germany’s second-biggest utility, and BG Group Plc clashed on a conference panel in London over the best way to price natural gas.

The German power generator, which is in a legal dispute with OAO Gazprom over the Russian company’s policy of linking its charges to oil costs, said the global nature of gas trading meant the fuel should be treated as an independent commodity. BG Group said gas buyers and sellers want to maintain the oil link. 

“As soon as you assume gas will evolve as just another global market on its own, there is no real reason to have gas indexed to oil,” Peter Kreuzberg, RWE Supply and Trading GmbH’s chief commercial officer, said on a panel at the Edison Electric Institute International Utility conference. Traders and utilities seek “clarity about the terms of conditions.”  MORE