- GDF Suez's (GDFZY, OTCPK:GDSZF) contract to buy natural gas from Azerbaijan shows how the decades-old structure of Europe’s energy market is starting to crumble, according to a Bloomberg report.
- For the first time, the French company signed a 25-year contract to buy gas from BP and partners in the Shah Deniz gas project reportedly at prices tied to those in western Europe’s domestic gas markets; the change matters because purchases had been made at prices tied to crude oil, which has doubled in the last five years, an expense then passed on to consumers.
- Europe is seeking more flexibility in gas prices as the continent looks to diversify supply; Gazprom (OTCPK:OGZPY) supplied ~30% of EU gas last year, but likely will be competing with exports from the U.S. as well as Azerbaijan in coming years.
- ETFs: UNG, DGAZ, UGAZ, BOIL, GAZ-OLD, KOLD, UNL, NAGS, DCNG