10-year gas deal possible, but prices may actually go down

A 10-year fixed-price agreement on gas like Labour is proposing is possible but there is a risk the global price could actually go down over the next decade, according to international industry experts. Professor Jonathan Stern, from Oxford University’s Institute of Energy Studies, confirmed that agreements of this length are not unusual. Indeed, this was relatively short for a new market entrant such as Malta. Prof. Stern also confirmed the possibility of locking prices through a hedging agreement.  But Prof. Stern, and another expert, Derek Lennon, said the development of an extraction technique called fracking means the reserves of this commodity have grown considerably over recent year and prices may go down. Full story in The Sunday Times.