LNG is linking regional natural gas markets: Evidence from the gravity model

Barnes, Ryan; Bosworth, Ryan

doi:10.1016/j.eneco.2014.10.004

Cited by 60 publications

(38 citation statements)

References 24 publications

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“…Siliverstovs et al . (), Neumann () and Barnes and Bosworth () indicated LNG (cheaper in transportation) as a major contributor to integrate markets. Brown and Yücel () suggested that oil prices may intermediate the price in different natural gas markets as well.…”

Section: Introductionmentioning

confidence: 99%

“…Many researchers and analysts, however, agree that natural gas markets have been increasingly integrated. Siliverstovs et al (2005), Neumann (2009) and Barnes and Bosworth (2015) indicated LNG (cheaper in transportation) as a major contributor to integrate markets. Brown and Y€ ucel (2009) suggested that oil prices may intermediate the price in different natural gas markets as well.…”

Section: Introductionmentioning

confidence: 99%

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Leading and lagging natural gas markets between Asia and Europe

Kim

2019

OPEC Energy Review

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This study investigates the dynamic relationship between Asian and European natural gas markets. The present study determines whether these markets underwent structural changes following i) the emergence of swing suppliers (Russia and Qatar) who export natural gas to both Asian and European markets, ii) substantial increases in Japan's gas import after the 2011 Great East Japan earthquake and iii) fast‐paced increases in China's gas import from Russia; its import increased significantly in 2011 and thereafter. We attempt to identify changes in the dynamic price process between these two markets and also in the long‐run equilibrium, by applying the price discovery framework (Vector Error Correction model). Main findings are i) Asian and European natural gas markets are cointegrated over the sample period (2000–2017) and ii) Asian market was leading the natural gas market, but after 2011, European market became the leader. Asian market is the major adjuster following the market shock which implies that any changes in European market would be transferred to Asian market. Results have implications for industry and policy analyses, and price risk management in the market.

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Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Leading and lagging natural gas markets between Asia and Europe

Kim

2019

OPEC Energy Review

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“…A major factor behind this development is the decline in costs of transportation of LNG (Barnes and Bosworth, 2015). Thus, within the gas markets we have perfect competition both upstream and downstream, and the gas price is determined endogenously in regional markets.…”

Section: The Global Energy Model Frisbeementioning

confidence: 99%

Phasing out coal and phasing in renewables – Good or bad news for arctic gas producers?

Lindholt

Glomsrød

2018

Energy Economics

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Abstract:This paper examines to what extent downscaling of global coal based electricity generation encourages gas demand and affects regional activity in gas production, with emphasis on the arctic regions. In our reference scenario up to 2050 we take into consideration that renewables is set to increase its contribution to global electricity production over time, while coal will contribute less. We find that a policy scenario with further phasing out of coal and phasing in of renewables in line with the 2 degrees scenario for the power sector up to 2050, will lead to reduced arctic gas production compared to the reference scenario, although total worldwide electricity production doubles over the same period. However, even in a situation with less resources and higher costs in the Arctic, future investments in new reserves in the region are still profitable in our policy scenario, as total arctic gas production then is only marginally lower in 2050 than today.Keywords: Arctic, coal market, gas market, electricity market, equilibrium model JEL classification: Q31, Q41, Q58. Acknowledgements

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“…Barnes and Bosworth (2015" employed a gravity model to test the function of LNG for the integration of the total gas market. The results indicated that LNG is indeed a global commodity, whereas compressed natural gas markets are more regional, and the trade in liquefied natural gas has de-regionalized the entire natural gas market.…”

Section: Introduction Introduction Introduction Introductionmentioning

confidence: 99%