German term (edited): Grenz�bergangspreise

Cross-Border Gas Sells At A Premium

At present, domestic gas (mainly associated) sold to local consumers in the Middle East is priced in the range of 75c-$1.25/Mn BTU. MEES soundings indicate however that cross-border projects will sell the newly-discovered non-associated gas anywhere between $1.30-3.00/mn BTU, well above the domestic price range. Cross-border gas pricing in the region lacks transparency, but evidence of agreed cif prices to date shows that regional consumers who already use gas from indigenous sources and who in the main lack the efficiencies that domestic energy markets have brought to European countries, will have to get used to paying substantially higher prices for imported gas. Whether the price difference will be paid by further government subsidy, or passed on to end users is a key issue now facing policy makers.