The east coast gas market explained: analysis of the gas market supply and demand dynamics

2018 ◽  
Vol 58 (1) ◽  
pp. 11
Author(s):  
Joshua Stabler
Keyword(s):  
Structural Change ◽  
Natural Gas ◽  
Government Policy ◽  
Electricity Market ◽  
East Coast ◽  
Supply And Demand ◽  
Market Transition ◽  
Liquefied Natural Gas ◽  
Economic Consideration ◽  
Gas Market

The Australian east coast gas market is experiencing arguably the most disruptive structural change since its inception, with the completion of the 25.4 mtpa Curtis Island Liquefied Natural Gas (LNG) facilities and the introduction of a fourth pillar to the market for domestic gas. However, this disruption was not in isolation and coincided with substitutional interactions with the electricity market already dealing with transition. This report develops context for the natural gas market, establishes the four major avenues of markets and then investigates eight fundamental supply and demand dynamics that are influencing the market in an interconnected fashion. The report concludes that all participants of the gas market must address the multiple dynamic drivers including economic consideration, government policy and regulatory engagement to avoid disorderly market transition.

A generational west coast gas shakeup looms

2021 ◽  
Vol 61 (2) ◽  
pp. 405
Author(s):  
Saul Kavonic
Keyword(s):  
Natural Gas ◽  
Government Policy ◽  
West Coast ◽  
Status Quo ◽  
Domestic Market ◽  
Liquefied Natural Gas ◽  
The Status ◽  
Gas Market ◽  
Western Australian ◽  
Policy Targets

From record high prices, a decade ago, to record low prices more recently, Australia’s west coast gas market is heading towards a structural shakeup that will challenge the status quo for producers, buyers and policymakers. The Western Australian (WA) gas market has been soft recently but is poorly understood, and prices may materially tighten this decade in wake of uncertain new supply timing, liquefied natural gas (LNG) producer recalcitrance towards domestic market, lack of new discoveries (outside Perth Basin), upward pressure on US gas pricing and government policy flexibility towards the emergence of LNG ullage. We believe a bifurcated WA gas market could emerge, whereby policy targets cheap gas to underpin new manufacturing, while existing gas buyers are left to compete against much higher LNG netback parity pricing.

Research on imbalance between supply and demand in China's natural gas market under the double-track price system

Energy Policy ◽  
2021 ◽  
Vol 155 ◽  
pp. 112380
Author(s):  
Jian Chai ◽  
Xiaokong Zhang ◽  
Quanying Lu ◽  
Xuejun Zhang ◽  
Yabo Wang
Keyword(s):  
Natural Gas ◽  
Supply And Demand ◽  
Price System ◽  
Natural Gas Market ◽  
Gas Market ◽  
Double Track

scholarly journals Using Concepts from the Study of Social Movements to Understand Community Response to Liquefied Natural Gas Development in Clatsop County, Oregon

2019 ◽  
Vol 3 (1) ◽  
pp. 1-7 ◽  
Author(s):  
Trang Tran ◽  
Casey L. Taylor ◽  
Hilary S. Boudet ◽  
Keith Baker ◽  
Holly L. Peterson
Keyword(s):  
United States ◽  
Social Movements ◽  
Natural Gas ◽  
Supply And Demand ◽  
Energy System ◽  
The United States ◽  
Community Response ◽  
Liquefied Natural Gas ◽  
Project Outcomes ◽  
Political Opportunities

Shifts in natural gas supply and demand since the early 2000s have triggered proposals for import and export terminals in coastal locations around the United States. Demand for such facilities is likely to grow with increasing rates of natural gas exports. Clatsop County, Oregon, is one such location that experienced over 10 years of debate surrounding the development of these facilities. The first liquefied natural gas (LNG) facility was proposed in this area in 2004; the final was withdrawn in 2016. While residents expressed both support and opposition early on, opposition dominated by the end. Drawing on insights from the literature on social movements, we conduct a case study of community response to LNG proposals in Clatsop County. We show how opponents were able to successfully frame the potential risks of LNG in a manner that had strong community salience, allowing them to appropriate resources and create political opportunities to advance their cause and influence local and state decisions. Engaging with this case provides an opportunity to observe the behavior and decisions of both opponents and supporters over time, and how they affected project outcomes. LNG proposals in Oregon have been among the most controversial cases of LNG development in the United States. As shale gas development continues to grow, understanding the conflicts involved with its associated infrastructure is critical to creating a more just and equitable energy system.

scholarly journals Impact of natural gas pricing policy for energy security and macroeconomic resilience: A literature review from global perspective

2021 ◽  
Vol 927 (1) ◽  
pp. 012009
Author(s):  
M A C Putriastuti ◽  
M Hanita ◽  
P Yusgiantoro
Keyword(s):  
Natural Gas ◽  
Supply And Demand ◽  
Global Perspective ◽  
Pricing Policy ◽  
Natural Gas Market ◽  
Market Dynamic ◽  
Natural Gas Development ◽  
Gas Market ◽  
The Government ◽  
Policy Transformation

Abstract Indonesia’s government has targeted 24% of natural gas in the national energy mix by 2050. However, one of the main problems in Indonesia’s natural gas development is the price mechanism. Unlike many countries, Indonesia’s natural gas market, including its pricing, is still heavily regulated and subsidized by the government. The low natural gas price has damaged the investment climate and slowed the natural gas development in the country. An overview of the global natural gas market evolution, as well as a comprehensive analysis of natural gas market transformation from China and Malaysia, were presented in this paper. The wider gap between supply and demand of natural gas and the increase of the LNG market in Asia have pushed China and Malaysia to reform their natural gas market into a liberalized system. This provides an insight to examine Indonesia’s natural gas pricing policies. The highly regulated market often fails to provide the actual cost of supply, leads to underinvestment, and causes a natural gas shortage in a country. Natural gas pricing policy transformation is mandatory to ensure supply stability and keep up with the global natural gas market dynamic. The transformation should be implemented gradually to give natural gas producers and end-users enough time to adjust to the regulations. In the end, gas-to-gas competition should be set as the long-term goal to allow retail competition in Indonesia’s natural gas market.

Central-Eastern Europe will compete for new LNG market

2018 ◽  
Keyword(s):  
Natural Gas ◽  
Eastern Europe ◽  
Liquefied Natural Gas ◽  
Content Type ◽  
Natural Gas Market ◽  
Eu Member States ◽  
Central Eastern Europe ◽  
The North ◽  
Central Eastern ◽  
Gas Market

Subject LNG in Greece, Croatia and Poland. Significance Liquefied natural gas (LNG) terminals and interconnectors are part of the north-south natural gas corridor advocated by EU member states in Central-Eastern Europe (CEE) as a means to reduce dependence on Russia. Impacts The LNG project in Greece could slow down Croatia's plans to build an LNG terminal off the island of Krk. Access to cheap US gas via LNG is transforming the natural gas market worldwide. Cheaper gas may facilitate the transition from coal and increase the share of renewables across the region.

Pricing prospects for global LNG and Australian gas markets

2014 ◽  
Vol 54 (2) ◽  
pp. 490
Author(s):  
Fiona Poynter
Keyword(s):  
East Coast ◽  
Supply And Demand ◽  
Supply Contracts ◽  
Short Term ◽  
Gas Industry ◽  
The Us ◽  
Gas Markets ◽  
Gas Market ◽  
Market Needs ◽  
Index Formulas

Global LNG pricing outlook Liquidity in the global LNG spot market is increasing and the industry is seeking price diversification in its supply contracts. The rationale for oil linkage is being challenged. Short-term trade now accounts for a quarter of the total market, and the US’ Henry Hub, the UK’s NBP, and global LNG spot indices are all used in LNG price indexation. Growth in LNG supplies, short-term trade, and operational flexibility will drive global price connectivity and increase transparency. The US will begin exporting LNG, tightening the price differential between Atlantic and Pacific basins. The LNG industry will continue to question the validity of oil-price linkage as it seeks a reliable reference capable of reflecting supply and demand fundamentals in the gas markets themselves. It is, however, important to recognise that gas-to-gas pricing will not automatically deliver cheaper LNG than equivalent oil-index formulas. East coast Australia gas pricing outlook Dynamics in Australian east coast gas markets are changing rapidly, with LNG at the heart of this revolution. The east coast gas industry seeks a deeper, more liquid and transparent market, while looking to international gas hubs for lessons in boosting market efficiency. The industry must address challenges such as gas storage and pipeline capacity if it is to have the flexibility needed to build a vibrant market. Oil-indexed LNG netback pricing is starting to work its way into east coast gas supply contracts; however, as the European gas industry moves away from oil indexation, Australia’s domestic gas market needs to look at alternative pricing structures.

ASSESSING THE POTENTIAL OF KEY EXPORTERS IN THE GLOBAL LIQUEFIED NATURAL GAS MARKET

2020 ◽  
Vol 1 (3) ◽  
pp. 39-48
Author(s):  
A. A. SHCHEGOL’KOVA ◽  
Keyword(s):  
Natural Gas ◽  
Economic Analysis ◽  
Large Scale ◽  
Global Market ◽  
Liquefied Natural Gas ◽  
Transport Infrastructure ◽  
Graphical Methods ◽  
Analysis Calculation ◽  
Key Drivers ◽  
Gas Market

The article provides an analysis of the global market for liquefied natural gas (LNG), which revealed the key drivers of changing market dynamics. The development and prospects of large-scale gas projects of the main LNG exporting countries are shown. The potential of key LNG exporters, prospects for the development of the global LNG market has been assessed. Research and analysis of trends in the global LNG market were carried out using statistical methods of economic analysis: calculation of averages, indices; creation of ranks of dynamics; Summaries, groupings of economic indicators; Graphical methods of research were also used. The article assesses the prospects of Russian producers in the global LNG market from the perspective of diversification and modernization of gas transport infrastructure.

FEATURES OF CURRENT ECONOMIC ENVIRONMENT OF GLOBAL LIQUEFIED NATURAL GAS MARKET

2020 ◽  
Vol 5 (12) ◽  
pp. 153-163
Author(s):  
A. A. SHCHEGOLKOVA ◽  
◽  
◽  
Keyword(s):  
Natural Gas ◽  
Large Scale ◽  
Driving Forces ◽  
Liquefied Natural Gas ◽  
Economic Environment ◽  
The Arctic ◽  
Resource Base ◽  
Natural Gas Market ◽  
Gas Market ◽  
The Impact

The subject of this article is the economic environment of the global liquefied natural gas (LNG) market. The article assesses the development trends in the global liquefied natural gas market, identifies the key driving forces of the global LNG market, analyzes the existing contractual models in the global LNG market. The study uses a general scientific methodology that provides for a systematic, comprehensive approach to assessing the current economic situation in the global LNG market. A significant array of statistical data and factual material on the global LNG market was analyzed, the results of the research were obtained using statistical methods of economic analysis. As a result, the author conducted an analysis of the trends in the global LNG market, which made it possible to identify the key driving forces behind changes in market dynamics. The dynamics and structure of the global LNG market for the period 2015–2019 have been investigated. An assessment of Russia's position in the global LNG market is given. The impact of the "coronacrisis" on the global LNG market has been studied. The development and prospects of large-scale gas projects of the main LNG exporting countries are shown, the influence of the price environment on the implementation of LNG projects is investigated. It is revealed that geopolitical factors have become decisive in the formation of the world energy policy. The possible impact of the legislative expansion of the resource base of the Arctic territories on the growth of production and export of Russian LNG has been determined. It is concluded that the strategic goal of Russia's energy geopolitics is to modernize the existing export model of LNG for the long term. Modernization of the existing energy export strategy will strengthen the country's competitive position in the global LNG market, thereby becoming the basis for Russia's regional presence in the Arctic, where the main increase in LNG capacity is expected.

scholarly journals Making a Global Gas Market: Territoriality and Production Networks in Liquefied Natural Gas

2017 ◽  
Vol 93 (3) ◽  
pp. 215-240 ◽  
Author(s):  
Gavin Bridge ◽  
Michael Bradshaw
Keyword(s):  
Natural Gas ◽  
Liquefied Natural Gas ◽  
Production Networks ◽  
Gas Market
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