Geopolitical Risk and the LNG-LPG Trade

Michail, Nektarios; Melas, Konstantinos D.

doi:10.1515/peps-2022-0007

Cited by 22 publications

(7 citation statements)

References 67 publications

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“…As a side effect, the importance of natural gas for energy security has also increased. Thus, the geopolitical risk [42] associated with gas supply and natural gas price volatility, as well as the economic risk associated with the marked increases in energy prices, can affect more than electricity prices in Greece, as well as in Europe. The spillover of energy to more social issues is naturally a topic not directly related to this paper; however, it is one that could be of interest for future research.…”

Section: Estimation Resultsmentioning

confidence: 99%

Liquefied Natural Gas Prices and Their Relationship with a Country’s Energy Mix: A Case Study for Greece

Bentsos,

Koursaros,

Louka

et al. 2023

Energies

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Using daily data, we investigate the relationship between European LNG prices, carbon prices (CO2), electricity wholesale prices and changes in the electricity sector’s energy mix in Greece, using a vector error correction model (VECM). The results indicate that an increase in the daily average price of natural gas has the expected impact on Greece’s wholesale electricity price. As expected, gas and other fossil fuels act as substitute goods, while higher imports of electricity lower prices and have a negative impact on fossil fuel shares. Interestingly, carbon prices do not appear to have any significant impact on any variables, while the higher production of electricity from renewable sources pushes wholesale electricity prices down.

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Section: Estimation Resultsmentioning

confidence: 99%

Liquefied Natural Gas Prices and Their Relationship with a Country’s Energy Mix: A Case Study for Greece

Bentsos,

Koursaros,

Louka

et al. 2023

Energies

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“…In the evolving landscape of global energy, Liquefied Natural Gas (LNG) emerges not only as a bridge fuel but also as a geopolitical player, influencing and being influenced by geopolitical events, trade agreements, and associated risks (Michail, and Melas, 2022;Snijder, 2008). This section delves into the geopolitical implications on LNG trade as the world navigates the transition to renewable energy.…”

Section: Geopolitical Implications On Lng Tradementioning

confidence: 99%

LNG as a bridge fuel in the transition to renewable energy: A global perspective

Gloria Siwe Usiagu,

Oladipupo Olugbenga Adekoya,

Chinelo Emilia Okoli

et al. 2024

World J. Adv. Res. Rev.

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The global energy landscape stands at the precipice of transformation, with a growing consensus on the imperative to shift towards sustainable and renewable sources. Amidst this transition, Liquefied Natural Gas (LNG) emerges as a pivotal bridge fuel, strategically positioned to facilitate the journey towards renewable energy. This review encapsulates the essence of the comprehensive review, delving into the global perspective on LNG's role as a bridge fuel in the renewable energy transition. The narrative unfolds with a contextualization of the pressing need for a renewable energy transition, acknowledging the escalating environmental concerns and the imperative to reduce carbon footprints. It then seamlessly transitions to the concept of LNG as a bridge fuel, elucidating its capacity to serve as a cleaner alternative to traditional fossil fuels and its role in mitigating the challenges associated with intermittent renewable energy sources. Examining LNG's significance on a global scale, the review navigates through key aspects. It scrutinizes the environmental considerations and carbon reduction goals that position LNG as a pragmatic choice in the decarbonization journey. The analysis extends to policy factors influencing LNG demand, unraveling the intricate tapestry of governmental initiatives supporting its adoption and the dynamic interplay with renewable energy policies. Economic drivers take center stage in the exploration of LNG's role as a bridge fuel. The review investigates the cost competitiveness, market dynamics, and the industrial demand propelling its consumption. The comprehensive examination encompasses the expansion of global LNG production capacity, featuring key exporting nations and the technological innovations transforming LNG production processes. Regional dynamics further enrich the narrative, providing insights into LNG's impact on major economies across Asia-Pacific, Europe, and North America. The review culminates in a nuanced exploration of the geopolitical implications surrounding LNG trade, emphasizing its role in geopolitical events, trade agreements, and potential risks for stakeholders. In essence, this review serves as a guide to stakeholders, policymakers, and industry players navigating the complex interplay between LNG and renewable energy in the global quest for a sustainable energy future.

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“…Thus, the latter bears difficulties both for the shipowners but also for the charters as to in which geographical area a vessel should be any time of the year. For example, the ports of the Black Sea where full of available dry bulk vessels around autumn due to the fact that both Russia and Ukraine are two of the major producers of wheat (Michail and Melas 2022). This created a conflict among the available vessels and subsequently the shipowners as to which vessel would be more suitable for the cargo's transportation.…”

Section: Literature Reviewmentioning

confidence: 99%

“…As already discussed, many studies have already documented how the plurality of the commodities that dry vessels carry is highly correlated to the broader macroeconomic environment. For example, Michail (2020) shows that dry bulk transport quantity is positively associated with the world GDP, Kamal et al, (2021) demonstrates a relationship with stock markets, while other researchers connect it with geopolitical risk (Drobetz et al 2021;Michail and Melas 2022). Similarly, Kavussanos and Alizadeh (2002) report a relationship with Brent oil prices, with Michail and Melas (2020) showing that unexpected macro shocks also affect them.…”

Section: Introductionmentioning

confidence: 97%

Can commodity prices predict stock market returns? The case of dry bulk shipping companies

Melas,

Michail

2024

J. shipp. trd.

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We explore the relationship between the returns of 45 dry bulk shipping company stock prices and the main 15 commodities that bulk carriers transport. Using a principal component analysis to reduce the dimensionality of the commodities dataset and a panel methodology, we find that a change in the commodity price principal component would result in a 0.6% change in the returns of the shipping stock prices. Minerals appear to have a stronger impact, as a 1% change in the minerals principal component results in a 1.1% change in the returns. This is mainly due to the fact that minerals account for larger trade volumes in the dry bulk market and they employ mostly bigger vessels, while the price of Brent oil is also an important factor affecting shipping stock prices.

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Geopolitical Risk and the LNG-LPG Trade

Cited by 22 publications

References 67 publications

Liquefied Natural Gas Prices and Their Relationship with a Country’s Energy Mix: A Case Study for Greece

Liquefied Natural Gas Prices and Their Relationship with a Country’s Energy Mix: A Case Study for Greece

LNG as a bridge fuel in the transition to renewable energy: A global perspective

Can commodity prices predict stock market returns? The case of dry bulk shipping companies

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