Correlation

In statistics, correlation indicates the strength and direction of a linear relationship between two random variables (in the case or our chart: gas trading prices). That is in contrast with the usage of the word in colloquial speech, denoting any relationship, not necessarily linear. Correlation does not imply causation.

EGT/NCG Hub

The former E.ON Gastransport trading hub (EGT) is now called NCG (NetConnect Germany) after having merged with bayernets zone. NCG is the fastest growing gas trading hub in Europe and the German benchmark. In 2007 E.ON had merged its three market areas EGT Nord, EGT Mid and EGT Süd into one area - as an initiative to increase liquidity on the German gas market.

Hub

A Trading Hub is a trading place or market.

LNG

Liquefied Natural Gas. LNG is natural gas that has been converted to liquid form. LNG can be stored and transported and is a flexible source of energy. The reduction in volume makes it much more cost-efficient to transport over long distances. Typically it is transported via specially designed sea vessels or tankers. 80% of LNG is traded through long term contracts. Currently there is no LNG terminal in Germany, but E.ON has a stake in the Rotterdam LNG terminal. E.ON Ruhrgas is active in production, liquefaction, shipping and regasification of LNG. LNG trading is becoming more and more important with technical progress and competitive prices. The role of LNG in international gas trading is growing.