Gas Pricing Mechanisms: Overview, Comparative Analysis and Recommendations

Abstract

With the development of natural gas trade on an international scale, pricing issues have become of serious importance for market participants. Natural gas is not a standard commodity, the main differences are that it is a natural resource, the reserves of which are unevenly distributed, and the investments in production and transportation are highly specific. This paper discusses the main gas pricing mechanisms and their use in key regions. The result of the study is the development of recommendations for the Republic of Moldova.