Toward the integration of European natural gas markets:A time-varying approach

Renou-Maissant, Patricia

doi:10.1016/j.enpol.2012.09.027

Cited by 48 publications

(20 citation statements)

References 18 publications

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“…These results reveal that there is regional gas market integration in United States as the null hypothesis of no co-integration between Henry Hub spot prices and pipeline gas import prices is rejected with 1% significance level supporting the results of De Vany and Walls (1993), Serletis and Herbert (1999) and Siliverstovs et al (2005). Moreover, there is a regional market integration in Europe, as the null hypothesis of no co-integration between LNG Europe and Pipe Europe is rejected with 1% significance level supporting the results of Asche et al (2011Asche et al ( , 2002, Siliverstovs et al (2005) and Renour-Maissant (2012). It is found that there is a strong evidence of co-integration between the price of Brent oil and each of the European gas prices and between the price of WTI oil and each of the European gas prices at 1% significance level.…”

Section: Findings and Discussionsupporting

confidence: 75%

“…Russian gas dominates in Germany and Italy where there is no LNG capacity beside Spain is the one with the biggest LNG consumer in Europe. Depending on this information, it is clear that Europe gas import depends on non-European gas and the gas infrastructure is needed to be expanded by installing new pipelines and LNG facilitates (Renour-Maissant, 2012). According to U.S. Energy Information Administration (http://www.eia.gov/countries/cab.cfm?fips=JA), Japan is the world's largest LNG importer with 37% of global purchase since 2012 beside its natural gas pipeline transmission infrastructure is not enough to meet this demand.…”

Section: ____________________________________________________________mentioning

confidence: 99%

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The dynamic interactions of world natural gas markets

Kapusuzoğlu¹,

Liang²,

Ulusoy³

2016

Pressacademia

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The aim of this study is to analyse the short and long-term interactions between the natural gas markets in the context of Europe, Japan and the US that are the main constituents of natural gas consumption in the world and between the natural gas and oil markets. Within the framework of this study co-integration test is performed and the variable groups that have long-term relationships with each other are presented. Finally, the pairwise Granger causality test is performed in order to examine the short-term causality relationships and the results of uni-directional, bi-directional and non-casual relationships are found.

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Section: Findings and Discussionsupporting

confidence: 75%

Section: ____________________________________________________________mentioning

confidence: 99%

The dynamic interactions of world natural gas markets

Kapusuzoğlu¹,

Liang²,

Ulusoy³

2016

Pressacademia

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“…shown by Robinson (2007), Renou-Maissant (2012) and Growitsch et al (2012), we argue that one unit of production or import shortfall to the European market results in similar economic effects for all cases and locations of the gas shortage. The method has the advantage that the estimated effect of supply shocks, as derived from our model, has a generalizable interpretation.…”

Section: Event Studies Of Supply Interruptions: Historical Decompositmentioning

confidence: 99%

What drives natural gas prices? — A structural VAR approach

2014

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractIn this study, we develop a structural vector autoregressive model (VAR) for the German natural gas market.Our setup allows us to analyze the determinants of the natural gas price in a comprehensive framework. In particular, we illustrate the usefulness of our approach by disentangling the effects of different fundamental influences on gas prices during three recent supply interruptions: The Russian-Ukrainian gas dispute of January 2009, the Libyan civil war in 2011 and the withheld Russian exports in February 2012. Our results show that the natural gas price is affected by temperature, storage and supply shortfalls in the short term, while the long-term development is closely tied to both crude oil and coal prices, capturing the economic climate and the energy specific demand.

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“…For historical reasons, this strand of the literature has focused first on North America (see e.g., De Vany and Walls, 1993;King and Cuc, 1996;Serletis and Herbert, 1999;Cuddington and Wang, 2006;Park et al, 2008;Apergis et al, 2015) where in the mid-80's governments implemented several policies aimed at deregulating the market for natural gas. More recent are the contributions focusing on European gas markets (see e.g., Asche et al, 2002;Neumann et al, 2006;Robinson, 2007;Renou-Maissant, 2012;Growitsch et al, 2015;del Valle et al, 2017) or presenting international comparisons (Siliverstovs et al, 2005;Li et al, 2014).…”

Section: Introductionmentioning

confidence: 99%

Convergence of European natural gas prices

2019

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Over the period 2015-2050 the consumption of natural gas of European OECD countries is expected to grow more than the consumption of any other energy source. Although these countries are interconnected and in most cases share a common currency, their wholesale national gas markets are highly heterogeneous. We study the determinants of crosscountry convergence of natural gas prices for industrial consumers in fourteen European countries. Our empirical analysis is based on the notions of pairwise, relative and σ-convergence. We show that there is evidence of pairwise price convergence and that some key characteristics of gas markets, such as the maturity of trading hubs and the degree of interconnection, are positively associated with the existence of a convergence process. This result carries over to the notion of σ-convergence and is robust to a number of changes in the implementation of the statistical tests. The analysis of relative convergence points to the existence of price-growth convergence, while price-level convergence is not supported by the data. Lastly, we assess the the short-run implications of price convergence focusing on the speed of reversion to equilibrium after a system-wide shocks hits the cointegrating relation.

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Toward the integration of European natural gas markets:A time-varying approach

Cited by 48 publications

References 18 publications

The dynamic interactions of world natural gas markets

The dynamic interactions of world natural gas markets

What drives natural gas prices? — A structural VAR approach

Convergence of European natural gas prices

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