Since the Survey inception in 2005, natural gas markets have undergone a significant transformation, with gas-on-gas (GOG) competition constantly increasing, largely at the expense of oil-price-escalation (OPE) pricing, and other forms of regulated pricing.
Between 2005 and 2024, the GOG share of global Gas consumption rose from 31.5% to 49%, while the oil-price-escalation (OPE) indexed price mechanism share fell from 24% to 18.5%.
Europe is dominated by GOG, with almost all of its domestic production, 80% of pipeline imports, and 78% of LNG imports priced with GOG. The natural gas market in Europe has changed dramatically over the past 20 years: in 2005, Europe’s natural gas prices were split between 63% OPE and 37% GOG, whereas today they are split between 3% OPE and 97% GOG. OPE is still the largest category in most Asian countries.
