Strategic Investment and International Spillovers in Natural Gas Markets
Strategic Investment and International Spillovers in Natural Gas Markets / Robert Ritz. Cambridge : Energy Policy Research Group, Feb. 2015, 25 p.
Author’s abstract :
This paper presents a game-theoretic analysis of multimarket competition with capacity investments, applied to international gas markets. It identi es a strategic advantage of focusedpipeline gas producers (e.g., Gazprom) over diversi edmultimarket exporters of lique ed natural gas (e.g., Qatar). Based on this, the paper examines the spillover impacts of the Fukushima nuclear accident onto European gas markets, both in the short- and longer-term. It also discusses Russias gas export strategy, especially the 2014 deals with China. More generally, the analysis shows how a less e¢ cient oligopolist can be more pro table, and speaks to policy discussions about security of supplyin energy markets.