scholarly journals A New Idea for LNG Trade: Enhancing Market Competition through a Tanker-Based Trading System

2020 ◽  
Vol 4 ◽  
pp. 9-19
Author(s):  
Satoru Hashimoto
Keyword(s):  
Natural Gas ◽  
Futures Markets ◽  
Market Competition ◽  
High Rate ◽  
Spot Markets ◽  
Asian Countries ◽  
Trading System ◽  
History Of ◽  
Gas Market ◽  
Gas Supply

This study proposes a new idea for liquefied natural gas (LNG) trade based on Japan’s natural gas market. As part of their high rate of economic growth in recent decades, many Asian countries, including Japan, have constructed natural gas supply chains that are characterized by natural monopolies and vertically integrated companies. In addition, although Japan has a 50-year history of LNG imports, its domestic natural gas distribution mechanisms are not designed to create connections among markets. Therefore, domestic spot and futures markets have never operated efficiently. To promote Japanese domestic market competition, this study proposes a “tanker-based trading system” involving LNG tankers owned by a consortium of Japanese firms and supported by the Japanese government. This trading system would enhance the market efficiency of LNG-based operating countries. Thus, a spot market for natural gas in Japan and East Asia can be created using LNG tankers, and the natural gas trading system in Japan can play a role in spot markets similar to the Henry Hub and the National Balancing Point.

scholarly journals Modelling gas supply systems with a high role of autonomous consumers (the case of Mongolia)

2020 ◽  
Vol 209 ◽  
pp. 05010
Author(s):  
Darya Maksakova ◽  
Sergei Popov
Keyword(s):  
Natural Gas ◽  
Distribution Patterns ◽  
Asian Countries ◽  
Gas Industry ◽  
Infrastructure System ◽  
Gas Market ◽  
Northeast Asian ◽  
Supply Systems ◽  
Gas Supply

The paper presents a tool to optimize gas infrastructure systems and analyses some aspects of modelling related to autonomous gas consumers. A model of national gas infrastructure creation in Mongolia is proposed. The model is linked with the model of the regional Northeast Asian gas market and the financial models of gas infrastructure facilities. The model determines the optimal design of the national gas infrastructure system, i.e. the number of the facilities, their capacities, locations and the transport modes for connecting the consumption centres. The role of autonomous consumers is considered by introducing the demand for liquefied natural gas separately from the demand for pipeline gas. The scope of the model application is demonstrated by an illustrative example. The results show the rational natural gas import and distribution patterns. The need for expanding the energy cooperation between Mongolia and the other Northeast Asian countries to create gas industry in Mongolia is highlighted.

scholarly journals A Strategic Model Of European Gas Supply

2011 ◽  
Vol 7 (5) ◽  
Author(s):  
Vitaly Kalashnikov ◽  
Nataliya Kalashnykova
Keyword(s):  
Natural Gas ◽  
Structural Changes ◽  
Value Added ◽  
Transport Infrastructure ◽  
Perfect Competition ◽  
Strategic Behaviour ◽  
Second Stage ◽  
Strategic Model ◽  
Gas Market ◽  
Gas Supply

Structural changes in the European natural gas market such as liberalization, increasing domestic demand, and increasing import dependency have triggered new attempts to model these markets accurately. In this paper, we propose an exhaustive model of the European natural gas supply including the possibility of strategic behaviour of the agents along the value-added chain. We structure it as a two-stage-game with natural gas exports to Europe (first stage) and wholesale trade within Europe (second stage). The case of non-cooperative Cournot competition at both stages proves to be the most realistic scenario. The results of the perfect competition and cartel scenario are also presented. Our results suggest that the main suppliers of natural gas to Europe (Russia, Algeria, the Netherlands, Norway) remain dominant, but that they are complemented by overseas supplies of liquefied natural gas (LNG). The model also enables us to identify transport infrastructure bottlenecks where transport capacity constraints are binding.

scholarly journals Fundamentals of Energy Regulation

2020 ◽  
Author(s):  
Andreas Poullikkas
Keyword(s):  
Natural Gas ◽  
Distribution System ◽  
Market Competition ◽  
Renewable Energy Sources ◽  
Electric Energy ◽  
Energy Regulation ◽  
Wide Range ◽  
Emerging Issues ◽  
Gas Market ◽  
Utility Managers

Fundamentals of Energy Regulation provides an insight to the wide range of topics necessary for energy regulators. Is a complete introduction to the world of energy regulation and provides the fundamental aspects of each energy regulation topic. Introduces important regulatory topics and features explanations of key economic and regulatory concepts.Fundamentals of Energy Regulation covers emerging issues associated with restructured electric energy and capacity markets as well as international practises affecting the natural gas and electric industries. Provides the various aspects and steps of managing the transition to energy market competition and for the development of energy tariffs.Fundamentals of Energy Regulation, also, provides an insight to the wide range of electricity generating technologies including renewable energy sources available today or under development, an overview of the future sustainable energy systems and environmental issues. Fundamentals of Energy Regulation is partly based on lecture notes pro- vided in two different courses for a number of years and is intended as an introductory textbook for courses in the field of energy regulation and energy markets. It is not by any means exhaustive, nor is it intended to be. In the more than two decades I’ve worked with the energy industry, the field has grown so vast that it’s no longer possible to confine all aspects within the covers of one book, even after limiting it to the most important issues.Fundamentals of Energy Regulation can serve as a reference text for energy regulators, power and natural gas market planners, utility managers, transmission system operators, distribution system operators, consultants, policy makers and economists.

The Natural Gas Futures Markets - is it Still Inefficient?

1994 ◽  
Vol 12 (5) ◽  
pp. 369-380 ◽  
Author(s):  
John H. Herbert
Keyword(s):  
Natural Gas ◽  
Futures Markets ◽  
Price Discovery ◽  
Futures Market ◽  
Informational Efficiency ◽  
Natural Gas Market ◽  
Price Series ◽  
Gas Market

The natural gas futures market is fundamental to the current natural gas market both as means of price discovery and for price hedging. Thus, the informational efficiency of the futures market is an important issue. In this article we re-examine the informational efficiency of the natural gas futures market. In this re-examination several cash price series are considered. It is found that the natural gas futures market is informationally efficient for only one of the cash markets. The characteristics of the current natural gas market that might explain the estimated results are also discussed.

Lead Industry Address – Leveraging opportunities in a growing but competitive market

2019 ◽  
Vol 59 (3) ◽  
Author(s):  
Ryan Lance
Keyword(s):  
Natural Gas ◽  
Free Market ◽  
Investment Decision ◽  
Clean Energy ◽  
Development Project ◽  
Domestic Markets ◽  
History Of ◽  
Gas Market ◽  
The One ◽  
The Right

ConocoPhillips has a history of success in Australia, investing more than $20 billion since 2004 and creating 4000 ongoing jobs. We are a foundation shareholder and operator of Australia Pacific LNG, vital to the export and domestic markets; an owner and the operator of Darwin LNG; and are approaching a final investment decision on the Barossa offshore supply development project in early 2020. Over the past decade our industry invested $200 billion into development here, making Australia the one of the world’s largest LNG exporters. These exports serve a global energy landscape that features growing demand for secure energy, but also an increasingly competitive supply market. In order for Australian LNG projects to attract investment capital in today’s market, they must be competitive on costs and financial returns. Industry is striving toward this with ongoing technological and efficiency improvements. But we also need a stable fiscal environment and access to natural gas resources. We therefore look to government for leadership in ensuring contract sanctity, opening land for exploration and development and allowing the free market to incentivise new investment. All these actions together would help ensure adequate supplies for Australia’s domestic natural gas market and vital export industry. Additionally, natural gas will be a vital part of the future energy mix in a lower-carbon world. Farsighted government policy can help assure Australia’s growing role in supplying the world with this abundant and affordable source of clean energy. To view the video, click the link on the right.

scholarly journals The V4’s Gas Market transition towards the EU’s Energy Security

2021 ◽  
Vol 16 (2) ◽  
pp. 207-218
Author(s):  
Katarína Sárvári
Keyword(s):  
Energy Security ◽  
Market Transition ◽  
Market Model ◽  
Spot Markets ◽  
Supply Contracts ◽  
Gas Market ◽  
Returns On Investment ◽  
Gas Supply ◽  
The Eu

Current development of the European gas market uncovers several new opportunities and challenges for energy security that developed from big changes in production, transit and supply ways of natural gas to Europe. New European gas market model builds on the principles of diversification, the security of supply, interconnectivity and liberalization. Realization of the EU Third Energy Package related to a progressive shift from long-term oil-linked gas supply contracts and development of alternative gas supply sources and lines, as well as the rivalry between already established gas transit lines and the new supply lines present new challenges and require transition for the V4 countries. In this article I studied what are the new changes and challenges of the transition of V4 countries towards the EU’s energy security? To adjust to transition V4 countries should build the new infrastructure on the short-term pricing market and the ways how it will be funded. If V4 countries want to trade gas with the neighbours and transport most of the Russian gas to Europe, they need to invest into reforms of pipelines’ networks or to find other alternatives of diversification in the next decades. Returns on investment on a liberalized market with a multitude of competitors will be manageable but require serious reforms. The V4 countries will have to enter into the spot markets to efficiently trade gas. Available gas hubs in Europe are much smaller, less liquid, and mostly supplied by the same companies as the long-term traded gas hubs. This kind of markets is easy to manipulate. Therefore, it is important for the V4 countries to plan how to coordinate their national energy policies and name EU’s energy targets for the future.

‘Back to the Future' A review of Australian reservation and other natural gas export control policies

2019 ◽  
Vol 59 (2) ◽  
pp. 505
Author(s):  
James Plumb
Keyword(s):  
Natural Gas ◽  
Gas Production ◽  
Export Market ◽  
North West ◽  
The North ◽  
History Of ◽  
Gas Market ◽  
The Government ◽  
Regulatory Controls ◽  
Land Reserve

Despite record levels of domestic production, forecasters are predicting that the east coast Australian gas market will remain tight in 2019. The introduction of the Australian Domestic Gas Security Mechanism (ADGSM) by the Federal Government in 2017, and the proposal announced by the Australian Labour Party (ALP) to bolster the mechanism, have again thrust the issue of political intervention in the export gas market into sharp focus. This paper provides an overview of the current regulatory intervention at the state and federal level, and looks back at the history of controls imposed upon the Australian gas export market. The paper is divided into two parts: Part 1, which looks at current regulatory controls engaged by various State and Federal governments: (a) the development and implementation of the ADGSM; (b) the development and implementation of the Queensland Government’s Prospective Gas Production Land Reserve policy (PGPLR); and (c) the Government of Western Australia’s (WA Government) domestic gas policy. The paper also reviews policy announcements made by the ALP in the lead up to the 2019 Federal election. Part 2 provides a broad overview of the history of controls on gas exports in Australia, from the embargo on exports from the North West Shelf between 1973 and 1977, through the increasing liberalisation of Australian energy policy during the 1980s and 1990s (and the associated conflict with state concerns of ensuring sufficiency of the domestic supply of gas), up to the removal of federal controls on resources exports (including liquefied natural gas) in 1997.

Algeria will aim to hold on to gas market share

2018 ◽  
Keyword(s):  
Natural Gas ◽  
Chief Executive ◽  
Liquefied Natural Gas ◽  
Supply Contracts ◽  
Content Type ◽  
Global Demand ◽  
Gas Market ◽  
One Year ◽  
Gas Supply

Significance Sonatrach is preparing to renegotiate most of its long-term contracts to supply natural gas by pipeline and as liquefied natural gas (LNG), as their expiry dates approach in 2019 and 2020. Ould Kaddour, who was appointed Sonatrach’s chief executive one year ago after a period of turbulence within Sonatrach, has made clear that he appreciates the need for a flexible approach in an intensely competitive market. Impacts Algeria’s hydrocarbons production is declining, but global demand for LNG in particular is rising fast. Securing new natural gas supply contracts will be vital for Algeria’s revenue prospects. Ould Kaddour’s efforts to foster better relations with international companies could be rewarded by increased investment.

scholarly journals Examination of the Spillover Effects among Natural Gas and Wholesale Electricity Markets Using Their Futures with Different Maturities and Spot Prices

Energies ◽  
2020 ◽  
Vol 13 (7) ◽  
pp. 1533
Author(s):  
Tadahiro Nakajima ◽  
Yuki Toyoshima
Keyword(s):  
Natural Gas ◽  
Electricity Markets ◽  
Futures Markets ◽  
Spillover Effects ◽  
Futures Market ◽  
Spot Markets ◽  
Electricity Prices ◽  
Spot Prices ◽  
Natural Gas Prices ◽  
Gas Price

This study measures the connectedness of natural gas and electricity spot returns to their futures returns with different maturities. We employ the Henry Hub and the Pennsylvania, New Jersey, and Maryland (PJM) Western Hub Peak as the natural gas price indicator and the wholesale electricity price indicator, respectively. We also use each commodity’s spot prices and 12 types of futures prices with one to twelve months maturities and realize results in fourfold. First, we observe mutual spillover effects between natural gas futures returns and learn that the natural gas futures market is integrated. Second, we observe the spillover effects from natural gas futures returns to natural gas spot returns (however, the same is not evident for natural gas spot returns to natural gas futures returns). We find that futures markets have better natural gas price discovery capabilities than spot markets. Third, we observe the spillover effects from natural gas spot returns to electricity spot returns, and the spillover effects from natural gas futures returns to electricity futures returns. We learn that the marginal cost of power generation (natural gas prices) is passed through to electricity prices. Finally, we do not observe any spillover effects amongst electricity futures returns, except for some combinations, and learn that the electricity futures market is not integrated.

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