The 2005 Proposal of the European Commission for a Regulation to Impose Balancing Mechanisms on Imports from Certain Countries and the Question of Energy Pricing
Article from: OGEL 1 (2006), in Economic and Commercial Context for Oil, Gas and Energy Law
Abstract
The issue of the pricing mechanism of Natural Gas Liquids (NGLs) in Saudi Arabia has been a topic of discussion in the accession negotiations of this country to the WTO. European Union has been at the forefront of these negotiations and had asked for the abolishment of this pricing mechanism. European Union claimed that such practice, which prices NGLs for domestic consumption cheaper than those for export (dual pricing), increases the import of cheap petrochemical products to Europe and places the European petrochemical industry in a comparative disadvantage. Although ...