regional gas prices differentials PERSIST
In 2012, gas price differentials between the three main regional markets (United States, Europe, and Japan) widened further and the spread between regional gas prices has never been so great. The surge in the Japanese LNG price reflected the rise in the oil price. In Europe, the average gas price of long-term contracts (which include a share of spot indexation) was also pushed up by both the rise in the Brent price and the NBP spot price. In the US, the Henry Hub plunged more than 30%, as producers pursued production of shale gas and maintain ample supply.In 2013, the trend of diverging regional gas prices, observed since 2009, has remained a common feature, and outside North America, natural gas and LNG prices are expected to remain at high levels.
Divergence of international gas prices