European market integration for gas
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OriginalversjonAsche, F. ; Osmundsen, P. & Tveterås, R. (2002) European market integration for gas. Energy Economics , 24(3) pp. 249–265 10.1016/S0140-9883(02)00003-8
Long-term take-or-pay contracts regulating gas exports to the Continent are described and analyzed. We thereafter examine whether the German gas market is integrated. Time series of Norwegian, Dutch and Russian gas export prices to Germany in 1990 1998 are examined. Cointegration tests show that that the different border prices for gas to Germany move proportionally over time, indicating an integrated gas market. We find differences in mean prices, with Russian gas being sold at prices systematically lower than Dutch and Norwegian gas. Among the explanatory factors for price discrepancies are differences in volume flexibility (swing) and perceived political risk.
This is a copy of an article originally published by Elsevier in Energy Economics; see http://www.sciencedirect.com/science/journal/03014215. © 2002 Elsevier Science B.V.