Expectations and the Evolving World Gas Market

A number of authors have noted that recent changes in the liquefied natural gas (LNG) industry are likely to favor shorter term multilateral trades of LNG relative to long term bilateral and project-specific contracts. We present a model in which expectations of such a change in market structure alt...

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Bibliographic Details
Published in:The Energy journal (Cambridge, Mass.) Mass.), 2007-01, Vol.28 (1), p.1-24
Main Authors: Brito, Dagobert L., Hartley, Peter R.
Format: Article
Language:English
Subjects:
Applied sciences
Capital costs
Collaboration
Economic data
Economic expectations
Economic models
Energy
Energy economics
Exact sciences and technology
Financial market structures
Fossil fuels and derived products
Gas
Gas industry
General, economic and professional studies
Industry forecasts
International markets
Liquefied natural gas
Liquefied natural gas industry
Market equilibrium
Market structure
Natural gas
Natural gas demand
Studies
Trade
Trade agreements
Transportation costs
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Summary:A number of authors have noted that recent changes in the liquefied natural gas (LNG) industry are likely to favor shorter term multilateral trades of LNG relative to long term bilateral and project-specific contracts. We present a model in which expectations of such a change in market structure alter investment behavior in a way that reinforces the original tendency. The result is that the structure of the natural gas market could change quite quickly, as happened previously in the world oil market.
ISSN:0195-6574
1944-9089
DOI:10.5547/ISSN0195-6574-EJ-Vol28-No1-1