Skip to main content
SpringerLink
Log in
Book cover

Energy Economics pp 353–381Cite as

Markets for Natural Gas

  • Chapter
  • First Online:

  • 10k Accesses

Abstract

This chapter introduces the specific features of the natural gas market and shows why the industry has developed in a different way than the oil industry. It then indicates the efforts being made in transforming the regional markets into a global market. The economics of the gas market relevant to the developed and the developing countries is also presented.

This is a preview of subscription content, log in via an institution.

Chapter
USD   29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD   84.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever

Tax calculation will be finalised at checkout

Purchases are for personal use only

Learn about institutional subscriptions

Notes

  1. 1.

    The Chinese are believed to have used natural gas around 500 BC for salt water desalination. Natural gas seepages were discovered in the United States in the seventeenth century and the first gas well was dug in 1821.

  2. 2.

    Thomas and Dawe (2003) indicate following other options: gas to liquids, compressed natural gas, gas to solids, gas to wire and gas to commodity.

  3. 3.

    The following assumptions were used in Jensen (2004): 2 trains of 3.3 million tons, 6,200 nautical miles of transport, and 10 tankers each costing $160 million. The cost of service is based on a regulated tariff using the traditional regulation.

  4. 4.

    The heat content of one barrel of WTI is 5.85 million Btu, so one-six of this produces 1 million Btu approximately.

  5. 5.

    Which should not to be mistaken for the Democratic Republic of Congo (DRC) or Congo-Kinshasa formerly known as Zaire.

  6. 6.

    The members of the West Central African region are Cameroon, Central African Republic, Chad, Congo, DRC, Equatorial Guinea, Gabon, and Sao Tome and Principe.

  7. 7.

    July 2005 estimates; CIA the World Factbook 2005, http://www.cia.gov/cia/publications/factbook/geos/cf.html.

  8. 8.

    Congo-Brazzaville country analysis brief, p1. Available on-line at http://www.eia.doe.gov/emeu/cabs/Congo_Brazzaville/pdf.pdf.

  9. 9.

    Congo-Brazzaville country analysis brief, p2. Available on-line at http://www.eia.doe.gov/emeu/cabs/Congo_Brazzaville/pdf.pdf.

  10. 10.

    It was set up in April 1998 by law No 1/98 and it has a capital of 900 millions CFA.

  11. 11.

    AfDB/OECD op. cit., p. 166.

  12. 12.

    IHS Energy as of February 2007 cited in EIA op. cit. p. 2.

  13. 13.

    Data from the “Mission économique de Brazzaville” available at http://www.izf.net/izf/EE/pro/congo/5020_electricite.asp.

References

  • Banks FE (1987) The political economy of natural gas. Croom Helm, London

    Google Scholar 

  • Brown SP, Yucel MK (2007) What drives natural gas prices? Working paper 0703, Federal Reserve Bank of Dallas, Dallas, Texas, USA

    Google Scholar 

  • Chenery HB (1949) Engineering production functions. Q J Econo 63(4):507–531

    Article  Google Scholar 

  • Davidson A, Hurst C, Mabro R (1988) Natural gas: Governments and oil companies in the third world, OIES. Oxford University Press, London

    Google Scholar 

  • Energy Charter Secretariat (2009) Fostering LNG trade: developments in LNG trade and pricing, Energy Charter Secretariat, Brussels, Belgium

    Google Scholar 

  • ESMAP (2003) Cross-border oil and gas pipelines: problems and prospects, energy sector management assistance programme. The World Bank, Washington, DC, USA

    Google Scholar 

  • Ibata B (2009) To develop or not to develop a natural gas market in the Republic of Congo? Unpublished doctoral thesis, University of Dundee, Dundee

    Google Scholar 

  • IEA (2000) Regulatory reform European gas, IEA, Paris

    Google Scholar 

  • Jensen JT (2004) The development of a global LNG market: is it likely? If so, when?. Oxford Institute of Energy Studies, Oxford, UK

    Google Scholar 

  • Julius DeAnne, Mashayekhi A (1990) The economics of natural gas: pricing, planning and policy. Oxford University Press, London

    Google Scholar 

  • Juris A (1998a) The emergence of natural gas markets. World Bank working paper, WPS 1895, World Bank, Washington, DC

    Google Scholar 

  • Juris A (1998b) Market developments in the United Kingdom’s natural gas industry. Policy research working paper 1890, World Bank, Washington, DC

    Google Scholar 

  • Massol O (2009) Cost function for the natural gas transmission industry: further considerations, Cahiers de recherche 09.09.86, CREDEN. University of Montpellier, Montpellier, France

    Google Scholar 

  • Miyamoto A, Ishiguro C (2009) A new paradigm for natural gas pricing in Asia: a perspective on market value, NG 28. Oxford Institute for Energy Studies, Oxford, UK

    Google Scholar 

  • Newbery DGM (1999) Privatisation, restructuring and regulation of network utilities. MIT Press, Mass

    Google Scholar 

  • Noble P (2009) A short history of LNG shipping 1959–2009. SNAME, Texas section (see www.sname.org)

  • Okimi H (2003) Comparative economy of LNG and pipelines in gas transmission. Paper for world gas conference 2003, Japan. See http://www.igu.org/html/wgc2003/WGC_pdffiles/10392_1045815366_9772_1.pdf

  • Percebois J (1986) Gas market prospects and relationship with oil prices. Energy Policy 14(4):329–346

    Article  Google Scholar 

  • Rogner HH (1989) Natural gas as the fuel for the future. Ann Rev Energy 14:47–73

    Article  Google Scholar 

  • Stern J (2007) Is there a rationale for the continuing link to oil product prices in Continental European long-term gas contracts, NG 19. Oxford Institute for Energy Studies, Oxford, UK

    Google Scholar 

  • Teece DJ (1996) The uneasy case for mandatory contract carriage in the natural gas industry, in New Horizons in Natural Gas Deregulation. Praeger, London

    Google Scholar 

  • Thanawat N, Bhattacharyya SC (2007) High gas dependence for power generation in Thailand: the vulnerability analysis. Energy Policy 35(6):3335–3346

    Article  Google Scholar 

  • Thomas S, Dawe RA (2003) Review of ways to transport natural gas energy from countries which do not need the gas for domestic use. Energy 28(14):1461–1477

    Article  Google Scholar 

  • Viscusi K, Vernon JM, Harrington JE Jr (2005) Economics of regulation and antitrust. MIT Press, Mass

    Google Scholar 

  • Yepez RA (2008) A cost function for the natural gas transmission industry. Eng Econ 53(1):68–83

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Centre for Energy, Petroleum and Mineral Law and Policy, University of Dundee, Dundee, United Kingdom

    Subhes C. Bhattacharyya

Authors
  1. Subhes C. Bhattacharyya
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Subhes C. Bhattacharyya .

Rights and permissions

Reprints and permissions

Copyright information

© 2011 Springer-Verlag London Limited

About this chapter

Cite this chapter

Bhattacharyya, S.C. (2011). Markets for Natural Gas. In: Energy Economics. Springer, London. https://doi.org/10.1007/978-0-85729-268-1_15

Download citation

  • DOI: https://doi.org/10.1007/978-0-85729-268-1_15

  • Published:

  • Publisher Name: Springer, London

  • Print ISBN: 978-0-85729-267-4

  • Online ISBN: 978-0-85729-268-1

  • eBook Packages: EngineeringEngineering (R0)

Publish with us

Policies and ethics

Search

Navigation