Seasonal Flexibility in the European Natural Gas Market

Iegor Riepin and Felix Musgens

The Energy Journal, 2022, vol. Volume 43, issue Number 1

Abstract: This paper focuses on seasonal demand swings in the European natural gas market. We quantify and compare the role of different flexibility options (domestic production, gas storage, and pipeline and LNG imports) to assess European demand fluctuations in monthly resolution. We contribute to the existing literature on seasonal flexibility by addressing the problem with a mathematical gas market optimization model. Our paper provides valuable empirical insights into the decline of gas production in northwestern Europe. Furthermore, we focus on how specific flexibility features differ between pipeline supplies and LNG supplies and between gas imports and storage dispatch. In terms of methodology, we construct a bottom-up market optimization model and publish the complete source code (which is uncommon for gas market models). Furthermore, we propose a new metricthe scaled coefficient of variationto quantify the importance of supply sources for seasonal flexibility provision.

JEL-codes: F0 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (2)

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