scholarly journals Revisiting the Long-Term Hedge Value of Wind Power in an Era of Low Natural Gas Prices

2013 ◽  
Author(s):  
Mark Bolinger
Keyword(s):  
Natural Gas ◽  
Wind Power ◽  
Natural Gas Prices

Turkmenistan is ill-equipped to adapt to low gas price

2017 ◽  
Keyword(s):  
Natural Gas ◽  
Content Type ◽  
Foreign Partner ◽  
Defence Spending ◽  
Natural Gas Prices ◽  
The Government ◽  
Gas Price

Subject Shortages in Turkmenistan despite gas wealth. Significance Despite predictions of more than 6% growth, the Turkmen economy has been hard hit by the decline in natural gas prices since 2014. News of food running out in the shops and cash becoming less available suggests the government is not coping well. Turkmenistan only has one gas customer, China, and the revenues are going partly to offset debt. Impacts The government may have to solicit IMF advice and Russian assistance but will be reluctant to accept their terms. Turkey, a long-term commercial and political friend, may be the most appealing foreign partner. Any upsurge in conflict along the border with Afghanistan will alarm the government and prompt higher defence spending.

Investigation of the price linkage between Asian LNG spot and Far East Asian LNG prices and its implications

2018 ◽  
Vol 1 (1) ◽  
pp. 52-65
Author(s):  
Muhammad Anas Pradipta
Keyword(s):  
Natural Gas ◽  
Unit Root ◽  
East Asian ◽  
Far East ◽  
Unit Root Tests ◽  
Spot Prices ◽  
South Korean ◽  
Natural Gas Prices ◽  
Augmented Dickey Fuller

For so many times, Far East Asian liquid natural gas (LNG) buyers have been using price linked to crude oil-indexed, now they need to find another alternative pricing formula for their crucial energy supply as a better price structure that could reflect the market is needed. LNG spot price is expected to be the pillar for the future LNG trading, especially for Far East Asia Market. As less and less long-term contracts are signed in the Far East Asia Market, this creates an additional demand for the LNG in the spot market, while it raises some issues about the presence of different LNG pricing mechanisms. Most of the LNG spot prices in Asia are indexed to the relatively low natural gas prices in Atlantic Basin. Furthermore, the advancement of drilling technology in the US drives down its natural gas prices, resulting in price discrepancies between Asian LNG spot and East Asian LNG prices. This study investigates whether there is a price linkage between Asian LNG spot and East Asian LNG prices. This study comprehends 91 observations collected from January 2010 to July 2017. Johansen co-integration tests were carried out to examine the existence of long-run relationship on the spot, Japanese and South Korean LNG prices. The Augmented Dickey-Fuller (ADF), Phillip-Perron (PP), and Kwiatkowski-Phillips-Schmidt-Shin (KPSS) unit root tests were conducted first before proceeding to the co-integration tests. The results showed that Asian LNG spot prices did not have price linkage for monthly averages of Japanese and South Korean LNG prices. The analyses also indicated that Taiwan LNG markets move together with Asian LNG spot markets. As a conclusion, the results inferred that supply dependency on LNG spot cargoes governed the price linkage among these Asian LNG markets. The use of gas indexed LNG price mechanism did not reflect the economic fundamentals in Asia-Pacific Basin. JEL Classification: Q41Keywords: Price linkage, Johansen co-integration, augmented Dickey-Fuller, Phillip-Perron, and Kwiatkowski-Phillips-Schmidt-Shin, unit root tests, Far East Asian LNG spot prices, LNG spot and short-term cargoes, long-term contracts, spot prices, energy: demand and supply, prices

Coal Rediscovered

1985 ◽  
Author(s):  
Jon C. Wilda ◽  
Mark C. Elizer
Keyword(s):  
Natural Gas ◽  
Oil Prices ◽  
Alternative Fuel ◽  
Development Work ◽  
Coal Slurry ◽  
Recent Experience ◽  
Natural Gas Prices ◽  
Oil Mixtures ◽  
Conventional Fuel

Despite recent experience in petroleum markets, future oil prices and availability are still major uncertainties that can have significant impact on energy users. Natural gas prices have also seen continual escalation. In COMCO’s coal-based alternative fuel development work, we have taken a long-term outlook, namely that the only sensible fuel strategy for utility and industrial users continues to be the increased utilization of coal. Coal slurry fuels, such as coal-oil mixtures and coal-water mixtures, represent a way for energy users with existing conventional fuel-fired equipment to increase coal utilization without replacing those facilities with costly new coal-fired systems. Paper published with permission.

AUSTRALIAN NATURAL GAS PRICES — WELLHEAD TO CONSUMER

1989 ◽  
Vol 29 (1) ◽  
pp. 19
Author(s):  
B.P. McCaul
Keyword(s):  
Natural Gas ◽  
Great Influence ◽  
Fuel Oil ◽  
State Governments ◽  
Long Distance ◽  
Initial Cost ◽  
Wide Range ◽  
Natural Gas Prices ◽  
Available Information

Natural gas prices to producers in all states of Australia, except Victoria, have moved closer together during the 1980s as the industry has matured. Where significant differences exist in city gate prices, they are caused by wide- ranging transmission tariffs related directly to the initial cost and the length and the volume carried in the respective pipelines.Gas utilities in some states had a great influence on the natural gas pricing structure to consumers during the 1970s, when alternative fuel oil prices rose dramatically and long- term, low- price gas purchase contracts were in place. State governments have moved during the 1980s, however, to replace the utilities as the greatest influence in the pricing chain from wellhead to consumer.With the notable exception of Victoria, producers in most states in recent years have gained a fairer, higher proportion of the end- consumer price. Gas markets to a major degree are now committed Australia wide.Confidentiality and complex pricing philosophies make it sometimes difficult to see clearly the wellhead to consumer pricing structure. However, available information can be analysed and compared to deduce the national scenario with fair accuracy. The wide range of prices to consumers reflects the fact that major industrial customers underpin the development economics of high- cost long- distance transmission lines.The abundance of gas in Australia, both onshore and offshore, makes new uses essential to optimise the industry's potential.

scholarly journals Expectations for Statistical Arbitrage in Energy Futures Markets

2019 ◽  
Vol 12 (1) ◽  
pp. 14 ◽  
Author(s):  
Tadahiro Nakajima
Keyword(s):  
New York ◽  
Natural Gas ◽  
Futures Markets ◽  
Energy Futures ◽  
Statistical Arbitrage ◽  
Natural Gas Prices ◽  
Arbitrage Opportunity ◽  
Cointegration Relationship ◽  
Energy Futures Markets

Energy futures have become important as alternative investment assets to minimize the volatility of portfolio return, owing to their low links with traditional financial markets. In order to make energy futures markets grow further, it is necessary to expand expectations of returns from trading in energy futures markets. Therefore, this study examines whether profits can be earned by statistical arbitrage between wholesale electricity futures and natural gas futures listed on the New York Mercantile Exchange. On the assumption that power prices and natural gas prices have a cointegration relationship, as tested and supported by previous studies, the short-term deviation from the long-term equilibrium is regarded as an arbitrage opportunity. The results of the spark-spread trading simulations using historical data from 2 January 2014 to 29 December 2017 show about 30% yield at maximum. This study shows the possibility of generating earnings in energy futures market.

scholarly journals How Strategic Behavior of Natural Gas Exporters Can Affect the Sectors of Electricity, Heating, and Emission Trading during the European Energy Transition

Energies ◽  
2020 ◽  
Vol 13 (19) ◽  
pp. 5040
Author(s):  
Sina Heidari
Keyword(s):  
Natural Gas ◽  
Market Power ◽  
Large Scale ◽  
Strategic Behavior ◽  
Emission Trading ◽  
Energy Transition ◽  
Market Model ◽  
Natural Gas Prices ◽  
Equilibrium Market

The European demand for natural gas imports may change through the energy transition, which may affect natural gas exporters’ strategic behavior and consequently the natural gas prices. Changes in natural gas prices in turn influence the European energy sector in terms of gas consumption in the short-term and investments in the long-term. The present paper develops a large-scale partial equilibrium market model formulated as a mixed complementarity model (MCP) with conjectural variations. This model considers the global natural gas market and the European markets of electricity, heating, and emission trading in one equilibrium. We apply this model to investigate the long-term impact of market power by gas exporters on the mentioned energy-related markets on the horizon of 2050. The results of the study show that a decrease in the market power by gas exporters decreases natural gas prices, leading to cheaper electricity and CO2 prices in the mid-term. However, a very tight emission cap in 2050 can result in the reverse phenomenon.

Sign in / Sign up

Export Citation Format

Share Document