LNG exporters and gas utilities operate in an ever more volatile energy sector – with climate and economic risks, due to the ongoing Covid-19 pandemic, all adding up and leading to a greater sensitivity of oil and natural gas prices. How does MET International assist its customers with this?
“Our customers have three key pricing challenges. First, they want to achieve a price that is better than what their competitors can get. Second, they have a budget from an energy procurement perspective that they need to stick to and third, they need to keep an eye on the prices of their end product in relation to their energy costs,” Vargha said, explaining the most direct link is to be found in the fertilisers market, where the feedstock is natural gas; but also, to a lesser extent, in companies that make things for consumers where the output is linked to the general inflation. “They need to manage all three in tandem in a volatile and often illiquid and untransparent environment,” he said, calling the conundrum a “big challenge” for customers.
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