The impact of US LNG exports and the prospects for price-competitiveness in the East Asian market

Sung, Jinsok

doi:10.1093/jwelb/jwx011

Cited by 2 publications

(1 citation statement)

References 0 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Meanwhile, the demand for natural gas increased sharply from 2010 to 2014, which was caused by: China's becoming the leader of the world economy and the leading importer of hydrocarbons, the accident at the Fukushima nuclear power plant in March 2011, the shutdown of nuclear reactors due to the scandal with components with false certificates in Korea (Sung, 2017). The combination of these factors contributed to the fact that the United States turned from an importer of energy resources into an exporter and achieved energy independence and security.…”

Section: Catalysts For the Natural Gas Market Modern Transformationsmentioning

confidence: 99%

Institutional Preconditions and Genesis of Natural Gas Exchange Trading

Курбет

2022

View full text Add to dashboard Cite

Natural gas is one of the world's leading sources of primary energy, and gas exchanges are key players in the natural gas market, which ensure its functioning on a liberal basis. Given the current liberalization trends, exchange trading in natural gas is gaining momentum and importance in this market. The main objective of the study was to determine the institutional preconditions and the main stages of the genesis of the exchange segment of natural gas trade. The study showed that gas exchanges and gas hubs are the key institutions of natural gas exchange trading, as they ensure openness and transparency of the market. As a result of the study, the author identified the following institutional prerequisites for the creation of gas exchanges: the need to form a competitive gas market and ensure its availability to third parties, ensuring transparent pricing and setting the market price for gas, simplification of trade procedures and standardization of products, protection of the execution of agreements and limitation of risks, which is manifested in the security and reliability of supplies and increasing the energy security of the state. Identifying the stages of the evolution of natural gas exchange trading, the author distinguished gas trading on mixed commodity exchanges, gas trading on universal and specialized energy exchanges, which began to emerge slowly in the 1990s, and gas market liberalization, accompanied by a boom in the creation of gas exchanges and gas hubs. The recession of 2008-2009, the shale gas revolution, the process of decarbonization of the economy and the full-scale invasion of Ukraine by Russia have been the main catalysts for the modern transformation of the natural gas market in recent decades. The author concludes that the latter will significantly affect the natural gas market in the coming years, which will lead to a revision of European policy in this area and the struggle for energy security. This paper is an original scientific study of the evolution of natural gas exchange trading and makes a certain contribution to the study of the peculiarities of the gas market functioning.

show abstract

Section: Catalysts For the Natural Gas Market Modern Transformationsmentioning

confidence: 99%

Institutional Preconditions and Genesis of Natural Gas Exchange Trading

Курбет

2022

View full text Add to dashboard Cite

show abstract

Factors of Global Competitiveness of American LNG

Zhukov

Maslennikov

Синицин

2019

Kontury glob. transform.: polit. èkon. pravo

View full text Add to dashboard Cite

The United States started lique fied natural gas (LNG) export in 2016 and just in two years became the world’s fourth largest exporter of LNG. There is a high probability that in the near future the U.S. will emerge as the third largest LNG exporter after Australia and Qatar. The article focuses on the factors, which ensure global competitiveness of U.S. LNG until 2030. The authors show that: first, the first wave of American export LNG projects significantly speeded up restructuring of contract system in the world gas trade as well as suppor ted development of a more flexible mechanism of natural gas pricing; secondly, production costs of the associated natural gas in the U.S. are relatively low and it is highly probable to expect Henry hub gas price to stabilize at around 2.5 dollars per MMBTU in the long run, what gives the American gas producers potential capability to significantly improve their global competitiveness by means of production and transportation costs reduction; fourthly, new waves of U.S. LNG export will not necessa rily be linked to the Henry Hub index, but to a wide range of price indicators, inclu ding the Brent oil price. With increasing flows of globally competitive Ameri can LNG entering the market, transformation of the institutional structure, contracts system and price mecha nism that have been unfold in the world LNG trade for the last ten to fifteen years became irreversible. That creates prerequisites for rapid formation of the world LNG market as well as with a some time lag of a global gas market.

show abstract

The impact of US LNG exports and the prospects for price-competitiveness in the East Asian market

Cited by 2 publications

References 0 publications

Institutional Preconditions and Genesis of Natural Gas Exchange Trading

Institutional Preconditions and Genesis of Natural Gas Exchange Trading

Factors of Global Competitiveness of American LNG

Contact Info

Product

Resources

About