The LNG Market: A Game Theoretic Approach to Competition in LNG Shipping

Gkonis, Konstantinos G.; Psaraftis, Harilaos N.

doi:10.1057/mel.2009.2

Cited by 18 publications

(18 citation statements)

References 3 publications

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“…Therefore, a firm that waits to engage in a CSR practice may benefit lesser than a competitor that acts earlier. Gkonis and Psaraftis (2009) adopted a game-theoretic approach to analyse competition in LNG shipping and found that an early mover may gain more profits than a late mover because the early mover was able to pre-commit to a higher level of supply. These findings suggest that the early mover advantage may exist in the context of lowemission shipping.…”

Section: Early Mover Advantagementioning

confidence: 99%

Financial performance of shipping firms that increase LNG carriers and the support of eco-innovation

Lim

2020

J. shipp. trd.

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The technology to liquefy natural gas for transport to countries worldwide and the increasing use of natural gas as a cleaner fossil fuel for industry and household meant that the supply of liquified natural gas (LNG) worldwide is a profitable trend. Shipping companies can strategically choose to diversify into LNG fleet to grasp this trend. By supplying more LNG shipping capacities, the greater availability of LNG worldwide, as a source of marine fuel and as a source of cleaner energy in replacing coal and oil, is supporting eco-innovation. In this paper, we investigate three economic and financial benefits to a shipping firm that diversified into liquefied natural gas (LNG) shipping, namely firm profitability performance, firm efficiency, and stock return performance. We also investigate if there is an early mover advantage in doing so. Our empirical findings indicate that fleet diversification into LNG carriers resulted in higher profitability and better operational efficiency. For the listed shipping firms, their stock returns increased with diversified exposures to the LNG business. There is some evidence of higher profitability in the early mover advantage. Firms that originated in LNG business also benefited when there was diversification into the non-LNG business.

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Section: Early Mover Advantagementioning

confidence: 99%

Financial performance of shipping firms that increase LNG carriers and the support of eco-innovation

Lim

2020

J. shipp. trd.

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“…Gkonis and Psaraftis [6] suggested that competing companies must take into account a capacity that each company supplies to the LNG shipping market. Cabalu [7] and Hartley [8] found that as a result of technological innovations in relation to transport, LNG transport costs were decreasing significantly and the volume of LNG imports and exports was gradually increasing.…”

Section: Related Literaturementioning

confidence: 99%

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

Hashimoto

2020

jaes

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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.

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“…Beside the mentioned categories, there are also a few studies in the literature that have focused on the applications of game theory (cooperative and non-cooperative games) in LNG shipping (i.e. Gkonis & Psaraftis, 2009;Massol & Tchung-Ming, 2010). Furthermore, in studies such as Berle et al, (2013) and Biobaku et al, (2015), risk analysis tools are also applied in LNG shipping problems.…”

Section: Related Work 21 Optimization In Lng Supply Chainmentioning

confidence: 99%

A binary particle swarm optimization algorithm for ship routing and scheduling of liquefied natural gas transportation

Yazdi

Kaviani

Emrouznejad

et al. 2019

Transportation Letters

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With the increasing global demands for energy, fuel supply management is a challenging task of today's industries in order to decrease the cost of energy and diminish its adverse environmental impacts. To have a more environmentally friendly fuel supply network, Liquefied Natural Gas (LNG) is suggested as one of the best choices for manufacturers. As the consumption rate of LNG is increasing dramatically in the world, many companies try to carry this product all around the world by themselves or outsource it to third-party companies. However, the challenge is that the transportation of LNG requires specific vessels and there are many clauses in related LNG transportation contracts which may reduce the revenue of these companies, it seems essential to find the best option for them. The aim of this paper is to propose a meta-heuristic Binary Particle Swarm Optimization (BPSO) algorithm to come with an optimized solution for ship routing and scheduling of LNG transportation. The application demonstrates what sellers need to do to reduce their costs and increase their profits by considering or removing some obligations.

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The LNG Market: A Game Theoretic Approach to Competition in LNG Shipping

Cited by 18 publications

References 3 publications

Financial performance of shipping firms that increase LNG carriers and the support of eco-innovation

Financial performance of shipping firms that increase LNG carriers and the support of eco-innovation

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

A binary particle swarm optimization algorithm for ship routing and scheduling of liquefied natural gas transportation

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