FERC Urged to Prop up Illiquid Natural Gas Indexes

An index is only as good as the data that goes into it. By that measure, the North American natural gas market indexes – which are used to price nearly 80% of physical supply contracts – could be on their way to irrelevance.

“It’s been kind of dire for a long time,” says John Gregg, a partner at law firm McCarter & English, which represents the American Public Gas Association (APGA), referring to the quality of data underpinning some natural gas indexes.