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

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.

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

Energy Policy ◽

10.1016/j.enpol.2021.112380 ◽

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

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Measuring Industrial Customer Satisfaction: The Case of the Natural Gas Market in Greece

Sustainability ◽

10.3390/su11071905 ◽

2019 ◽

Vol 11 (7) ◽

pp. 1905 ◽

Cited By ~ 6

Author(s):

Dimitrios Drosos ◽

Michalis Skordoulis ◽

Garyfallos Arabatzis ◽

Nikos Tsotsolas ◽

Spyros Galatsidas

Keyword(s):

Natural Gas ◽

Customer Satisfaction ◽

Customer Service ◽

Consumer Satisfaction ◽

High Performance ◽

Sufficient Information ◽

Pricing Policy ◽

Natural Gas Market ◽

Gas Market ◽

The One

This aim of this paper is to measure industrial consumer satisfaction in the natural gas sector in Greece. By using the Multicriteria Satisfaction Analysis (MUSA) method, the paper measures industrial customer satisfaction based on criteria concerning the provided products and services, communication and collaboration with providers’ staff, customer service, pricing policy and website. The research results that are based on the analysis of 95 questionnaires collected during the period between June 2017 and October 2017 show that the index of the global customer has a good performance as its value is about 74.99%. Furthermore, the satisfaction criterion with the highest performance is the one concerning communication and collaboration with natural gas providers’ staff. It should be noted that the criterion concerning the provided products and services criterion is the only one with high performance and importance—meaning that it should be in the spotlight of the natural gas providers. The paper concludes that there is considerable space for improvements to be made. Customer satisfaction is of great importance for every company, as it can be highly connected with its performance. Using the results of this study, natural gas providers will have the chance to frame their future actions in order to keep their industrial customers satisfied. Taking into account both the fact that industrial customers’ share in the Greek natural gas market is about 25% and that this market has been recently liberalized, it is of vital importance for natural gas providers to have sufficient information about their industrial customers’ satisfaction.

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Swing Suppliers and International Natural Gas Market Integration

Energies ◽

10.3390/en13184661 ◽

2020 ◽

Vol 13 (18) ◽

pp. 4661

Author(s):

Sang-Hyun Kim ◽

Yeon-Yi Lim ◽

Dae-Wook Kim ◽

Man-Keun Kim

Keyword(s):

Natural Gas ◽

Market Integration ◽

Supply And Demand ◽

Gas Production ◽

Correction Model ◽

Natural Gas Market ◽

Term Contract ◽

Gas Market

This study explores the international natural gas market integration using the Engle–Granger cointegration and error correction model. Previous studies have suggested that liquefied natural gas (LNG) and oil-linked pricing with a long-term contract have played key roles in gas market integration, especially between European and Asian markets. There is, however, little discussion of the role of the emergence of a swing supplier. A swing supplier, e.g., Qatar or Russia, is flexible to unexpected changes in supply and demand in both European and Asian markets and adapts the gas production/exports swiftly to meet the changes in the markets. Qatar has been a swing supplier since 2005 in the global natural gas market. In 2009, Qatar’s global LNG export share reached above 30% and has remained around 25% since then. Empirical results indirectly support that the emergence of a swing supplier may tighten market integration between Europe and Asia. The swing supplier may have accelerated the degree of market integration as well, particularly after 2009.

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The Analysis of Natural Gas and Crude Oil Market from the Global and EU Perspective

Studia commercialia Bratislavensia ◽

10.2478/v10151-012-0004-9 ◽

2012 ◽

Vol 5 (18) ◽

pp. 282-296

Author(s):

Saleh Mothana Obadi ◽

Matej Korček

Keyword(s):

Natural Gas ◽

Crude Oil ◽

Supply And Demand ◽

Oil Market ◽

Natural Gas Development ◽

Oil And Natural Gas ◽

Gas Market ◽

The One ◽

The Impact ◽

The Eu

Abstract This paper deals with the development of the crude oil and natural gas market in the world and especially in the EU. The analysis of the mentioned energy commodities are based on time serious statistical data and legislative documents and treaties adjusting the energy market. In this paper we analyze how the natural gas and crude oil as the two energy sources that are on the one hand most important in the energy mix and on the other hand least available within the very territory of EU itself therefore meaning the largest threat to the energy security of EU countries. We focus on analyzing of development of the worlds crude oil and natural gas development as the economic environment developed during last 20 year. Then we characterize what has EU done as the reaction on this development and finally we analyze the impact on EU in terms of supply and demand for natural gas and crude oil in first decade of 21st century. We found that, in 2009, the 66 % of EU natural gas imports were from four countries (Russia, Algeria, Norway and Nigeria) and the EU crude oil imports reached about 87 %.

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