The Assessment of Natural Gas Pricing

Gižienė, Vilda; Žalgirytė, Lina

doi:10.1016/j.sbspro.2015.11.412

Cited by 12 publications

(4 citation statements)

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“…They find that the global economy is the main driving factor in natural gas prices in North America while oil prices play a major part in determining gas prices in Asia and Europe. Giziene and Zalgiryte (2015) They conclude that gas prices are decided through gas-on-gas competition because fundamental factors-such as gas consumption, temperature, and economic activity-have significant impacts on day-ahead gas prices, whereas oil's role is minor, and coal prices have no effect on gas prices. Geng et al (2016a) investigate the dynamics of natural gas prices in the United States, Japan, and Europe.…”

Section: See Thatmentioning

confidence: 99%

Oil indexation, market fundamentals, and natural gas prices: An investigation of the Asian premium in natural gas trade

2018

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A heated debate has arisen over whether the Asian premium (i.e., higher prices in Asia than elsewhere) in natural gas trade is due to price discrimination or market fundamentals. Determining the origin of this premium can help to guide the gas industries and policy makers in Asia, especially when the traditional oil-indexed price mechanism fades away. Using a new systemic time-series approach, this paper explores the extent to which oil prices and market fundamentals contribute to variations in gas prices in Japan, the United States, and Germany. We find clear crosscountry differences and time-varying patterns. Gas prices are much less affected by supply and demand factors than oil prices in Japan and Germany, whereas these factors are more important than oil prices in the US market, which has a pricing hub. Through rolling-windows and subsample analysis, we discover that oil prices were important in Japan and Germany, but the level of importance has declined significantly in recent years, though the contribution of fundamentals does not change much. The results show that Asian gas prices are determined more by oil prices than by the market fundamentals; thus the Asian premium is more likely due to this oil indexed pricing mechanism, rather than market fundamentals. This suggests that developing Asia's benchmark prices (through trading hubs) with a better reflection of regional specific fundamentals can lead to a more efficient allocation of gas resources.

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Section: See Thatmentioning

confidence: 99%

Oil indexation, market fundamentals, and natural gas prices: An investigation of the Asian premium in natural gas trade

2018

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“…It varies over time and across the international markets . The natural gas price is properly assessed by gas production, transmission, distribution and consumption costs (Giziene and Zalgiryte, 2015). In general, the natural gas prices are the function of market supply and demand, as shown in Table 3.…”

Section: Natural Gas Market and Pricingmentioning

confidence: 99%

An overview of the natural gas sector in Tanzania - Achievements and challenges

Bishoge

Zhang

Mushi³

et al. 2018

jaar

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In the recent years, Tanzania has discovered a lot of natural gas reserves which are expected to influence positively the socio-economic and political development of the nation. It provides the potential opportunities to government, domestic and foreign companies and thelocal community. However, the main objective of any natural resource management is to assist the country to realizethe actual economic growth of its people. This paper, therefore, is intended to provide the overview of the natural gas sector in Tanzania. It analyses natural gas history, reserves, extraction and supply; infrastructure; market and pricing; and it moreover, evaluates the achievements and challenges facing the natural gas industry development.

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“…Gambar-3 menggambarkan model pembentukan harga gas bumi tersebut. Menurut Giziene & Zalgiryte (2015) harga gas bumi dipengaruhi oleh faktor eksternal dan internal. Dari sisi eksternal, harga gas bumi dipengaruhi oleh harga komoditas energi yang lain terutama minyak bumi.…”

Section: Tinjauan Pustakaunclassified

“…Dari sisi internal, harga gas bumi dipegaruhi biaya investasi, biaya produksi, kontrak jual beli gas, biaya penyimpanan dan biaya distribusi gas. GAMBAR-3: Natural Gas Pricing Model Sumber: Giziene & Zalgiryte (2015) Struktur harga gas bumi di tangan industri pengguna domestik cukup kompleks. Harga gas tergantung lokasi dan ketersediaan infrastruktur distribusi gas.…”

Section: Tinjauan Pustakaunclassified

Analisis Dampak Insentif Fiskal Penetapan Harga Gas Bagi Industri Domestik Terhadap Perekonomian: Pendekatan Model CGE Dinamis

Nugroho¹,

Amir²

2018

KEK

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AbstrakOptimalisasi pemanfaatan gas bumi untuk kebutuhan domestik terkendala oleh mahalnya harga gas yang sampai di tangan industri pengguna gas domestik. Untuk mengatasi hal tersebut, pemerintah telah mengeluarkan insentif fiskal berupa Perpres nomor 40 tahun 2016 tentang Penetapan Harga Gas Bumi. Penelitian ini bertujuan untuk menganalis dampak dari insentif fiskal tersebut terhadap perekonomian nasional. Hasil simulasi dengan model Computable General Equilibrium (CGE) Fiskal Dinamis menunjukkan bahwa kebijakan penetapan harga gas bumi tertentu dapat meningkatkan kinerja perekonomian nasional. Hal tersebut ditandai dengan adanya peningkatan GDP pada kisaran 0,12% - 0,13% pada jangka menengah. Pada sisi industri, harga input gas yang lebih rendah akan memangkas biaya produksi sehingga membuat output industri menjadi lebih murah kompetitif. Industri yang mengalami peningkatan output antara lain industri besi baja, industri pupuk, industri keramik, industri kaca, industri barang-barang dari karet, industri pulp & kertas, dan industri makanan & minuman.AbstractExpensive domestic gas price has constrained the natural gas utilization by the domestic industry. To deal with this situation, the government has issued fiscal incentives of Presidential Regulation number 40 of 2016 on the Natural Gas Price Regulation. The purpose of this paper is to analyze the impact of the fiscal incentives to the economy. The Simulation result with Dynamic Fiscal CGE model shows that overall, the fiscal incentive will improve the performance of the national economy. The GDP increases in the range of 0.12% - 0.13% in the medium term. On the micro side, lower gas input prices will lower production costs, thus making industrial output cheaper and more competitive. The output of the following Industries are increasing: steel, fertilizer, ceramic, glass, rubber, pulp & paper, and food & beverage

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The Assessment of Natural Gas Pricing

Cited by 12 publications

References 1 publication

Oil indexation, market fundamentals, and natural gas prices: An investigation of the Asian premium in natural gas trade

Oil indexation, market fundamentals, and natural gas prices: An investigation of the Asian premium in natural gas trade

An overview of the natural gas sector in Tanzania - Achievements and challenges

Analisis Dampak Insentif Fiskal Penetapan Harga Gas Bagi Industri Domestik Terhadap Perekonomian: Pendekatan Model CGE Dinamis

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