The Global Natural Gas Market. Will transport cost reductions lead to lower prices?

Arbeitspapier

Reduced transportation costs are usually associated with lower import prices, increased trade and price convergence. In this paper we show that the lower costs can actually lead to higher import prices in some regions, and price divergence between import regions. Using both a general theoretical approach and a numerical model of the global natural gas market, we demonstrate that the price effect from transport cost reductions depend on the relative distances between regional markets, the choice of transport technology, and supply and demand responsiveness in the different markets. Our numerical results suggest that European consumers would generally be better off if pipeline costs are reduced, while North American consumers would be better off if LNG costs are reduced.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Discussion Papers ; No. 523

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Optimization Techniques; Programming Models; Dynamic Analysis ; Trade: Forecasting and Simulation ; Gas Utilities; Pipelines; Water Utilities ; Nonrenewable Resources and Conservation: Demand and Supply; Prices ; Transportation Economics: General
• Thema: Natural gas ; trade ; transport costs ; price convergence ; numerical model

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Rosendahl, Knut Einar ; Sagen, Eirik Lund
• Ereignis: Veröffentlichung
• (wer): Statistics Norway, Research Department
• (wo): Oslo
• (wann): 2007

Weitere Informationen

• Handle: http://hdl.handle.net/10419/192505
• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ