SPECIFIC FEATURES OF PRICING MECHANISMS ON WORLD NATURAL GAS MARKETS
The article looks at specific features of natural gas pricing mechanisms that are being used on regional gas markets. The author notes that the mechanism which links natural gas prices to oil prices is currently the most frequently used compared to other mechanisms. Deregulation of gas markets may facilitate the transition to more competitive hub-based pricing, which has already taken place in North America and the UK. The statistical analysis has shown that it is still too early to note the formation of an integrated world natural gas market, as regional gas prices are not correlated to each other and may even move in opposite directions. However development of trade relations and increase in the LNG trade may strengthen further convergence of regional natural gas markets and unification of pricing mechanisms.