intl.risk

How Natural Gas and Oil Prices Are Linked

Actually, linkage started in late 1970s, early 1980s when Japan agreed to use Japan Crude Cocktail as escalator for LNG import contracts and Western European countries linked Russian gas pipeline and Algerian LNG imports to heating oil. US refusal to accept link at the time is why Algeria unilaterally abrogated its LNG export contracts with US companies in 1980.