Possibility of natural gas cartel isn

Despite meeting of producers, experts say market


Unlike oil, which is traded on an exchange that constantly updates the market price based on supply and demand, most gas is sold under tight contracts that allow buyers to lock in prices for up to 25 years.

The formation of a gas exchange has been difficult because most natural gas is delivered via pipelines and is not as easily shipped around the world to different buyers as oil. Pipeline infrastructure also requires significant investment that often makes long-term contracts necessary.

AP