New conditions of competition in the European gas market

2020 ◽  
Vol 22 (5) ◽  
pp. 84-92
Author(s):  
PETER ILIEV PETROV ◽  
Keyword(s):  
Natural Gas ◽  
Liquefied Natural Gas ◽  
The European Union ◽  
Practical Application ◽  
Gas Industry ◽  
Natural Gas Market ◽  
Gas Market ◽  
The Impact ◽  
Different Parts

This article aims to discuss the process of liberalization of the natural gas market in the European Union (EU). The purpose of this research is to show the fundamental characteristics of the gas industry, the process of reconstruction of the European gas market, taking into account the ongoing changes in the context of geopolitical, ecological, and technological determinants of the international and European energy and gas sector. The article describes the structure of the modern European natural gas market, compares the competitiveness of gas transportation methods through trunk pipelines and gas tankers transporting liquefied natural gas. The article examines the impact of the increase in the supply of liquefied natural gas on the situation with the turnover of gas trade in the European market, in particular, how it affects the delivery of hydrocarbons and the growth in the scale of exchange trading. The article examines the Groningen model, which influences the development of gas exchange trading and natural gas trading through long-term contracts. The evolution of the European policy in the field of natural gas, the established strictly regulated version of the “well-functioning” gas market, remains as one too political and unstable experiment. The importance of natural gas changes all the time, depending on economics, the security of deliveries, and sustainability. Furthermore, the focus on that importance and its practical application vary in different parts of Europe. The conclusion is made that a “well-functioning” gas market is characterized by the presence of a large number of suppliers, and competition leads to a noticeable decrease in prices for natural gas. However, in the current situation, the demand for gas turns out to be unstable, and difficult conditions for pipeline supplies are emerging for traditional suppliers. In the long term, the “well- functioning” gas market scheme will remain highly politicized and unstable, with increased competition in supply and a downward trend in gas prices. Thus, the European gas market is transforming towards the formation of a “buyer’s market”.

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 The impact of transaction costs on the transformation of the natural gas market of Ukraine

2019 ◽  
Vol 2019 (3) ◽  
pp. 60-77
Author(s):  
Roman Yukhymets
Keyword(s):  
Natural Gas ◽  
Transaction Costs ◽  
Institutional Environment ◽  
Energy Sector ◽  
Transformation Process ◽  
Third Party ◽  
Free Access ◽  
Natural Gas Market ◽  
Gas Market ◽  
The Impact

The desire to integrate into the European development model stipulated that Ukraine voluntarily assumed international commitments about transformation of the institutional environment according to the European model. The level of political awareness of the content of the necessary changes and how to achieve a systemic balance of reforming different sectors was often declarative in the absence of any sound estimates, including the implications for different economic actors. However, the need to reform the energy sector was determined not only by international obligations, but also by the presence of domestic problems, which over time without the application of systemic changes would become barriers to the entire further economic development of Ukraine. The main content of the implementation of European directives in the energy sector was just intended to systematically transform market relations by changing the rules of market functioning, which was supposed to solve the main crisis problems in various areas of the energy sector. The recent model of Ukrainian natural gas market was featured by all the shortcomings of the pre-reformed state of European markets: the tariff system did not promote rational consumer behavior, which exacerbated the pressure on the state budget; the delivery rules did not guarantee the proper quality of service; the absence of investment in the gas transportation sector made it impossible to expand fixed assets; the established transport and distribution rules became a barrier to free access to third-party networks and the development of competition in the supply segment. The actual implementation of the Second and Third Energy Package standards in the functioning of the national market of the natural year began in 2015, with the adoption of the Law on the Natural Gas Market. Today, an urgent task remains to estimate the process of reforming the natural gas market and to efficiently solve those crisis phenomena that caused the distortion of the institutional environment of the natural gas market. Since the accumulated problems of the previous model of the natural gas market were due to the inefficiency of the institutions, the article attempted to evaluate the effectiveness of the gas sector transformation process and analyze the impact of changes in certain market segments from the perspective of neoinstitutional theory and study the level of transaction costs.

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.

A modified Cournot model of the natural gas market in the European Union: Mixed-motives delegation in a politicized environment

Energy Policy ◽  
2012 ◽  
Vol 41 ◽  
pp. 280-285 ◽  
Author(s):  
Thijs Jansen ◽  
Arie van Lier ◽  
Arjen van Witteloostuijn ◽  
Tim Boon von Ochssée
Keyword(s):  
European Union ◽  
Natural Gas ◽  
The European Union ◽  
Cournot Model ◽  
Natural Gas Market ◽  
Gas Market ◽  
Mixed Motives

scholarly journals THE IMPACT OF UKRAINE'S FINANCIAL COOPERATION WITH THE IMF ON THE REFORMATION OF THE ENERGY MARKET AND PRICE POLICY IN THE FIELD OF GAS SUPPLY

10.23856/3004 ◽  
2018 ◽  
Vol 30 (5) ◽  
pp. 52-59
Author(s):  
Iryna Vasylchuk ◽  
Iryna Yegorova ◽  
Natalia Suzdal
Keyword(s):  
Price Policy ◽  
Energy Market ◽  
The European Union ◽  
Gas Industry ◽  
Financial Cooperation ◽  
The Reformation ◽  
Gas Market ◽  
The Impact ◽  
The International Monetary Fund ◽  
Gas Supply

The research identifies necessity to implement the requirements established by the International Monetary Fund, as the need for a new tranche from the fund may lead to the implementation of uneffective policy in the gas market of Ukraine. The current competitive environment in the gas market of Ukraine has been analyzed. The article estimates the expediency of increasing gas prices in Ukraine to the market level and the possible effects of such solution for the retail customers. The comparison of the price environment on the markets of the European Union and the domestic market is carried out. Authors determine forecasted volume of the country's capacities in the gas industry and offer possible ways for the future development of the gas industry of Ukraine.

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