Linking Natural Gas Markets - Is LNG Doing its Job?

Anne Neumann

The Energy Journal, 2009, vol. Volume 30, issue Special Issue, 187-200

Abstract: The increase in liquefied natural gas trade has accelerated the integration of previously segmented markets in North America, Europe, and Asia. This paper provides evidence on the integration of the transatlantic natural gas market; it thus complements other papers in the EMF 23 study that focus on prices and international natural gas trade. We test the theoretical proposition that in integrating markets commodity prices should move closer than before. Using 2,059 pairs of daily spot prices for natural gas in North America and Europe we investigate price dynamics covering the period from 1999 until 2008. We apply the Kalman Filter technique which measures convergence by allowing for dynamic structural change to gain detailed information on trends inherent in prices over time. Results suggest an increasing convergence of spot prices on either side of the Atlantic Basin.

JEL-codes: F0 (search for similar items in EconPapers)
Date: 2009
References: Add references at CitEc
Citations: View citations in EconPapers (52)

Downloads: (external link)
http://www.iaee.org/en/publications/ejarticle.aspx?id=2323 (text/html)
Access to full text is restricted to IAEE members and subscribers.

Related works:
Journal Article: Linking Natural Gas Markets - Is LNG Doing its Job? (2009)
Working Paper: Linking Natural Gas Markets: Is LNG Doing Its Job? (2008)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aen:journl:hh-se-a12

Ordering information: This journal article can be ordered from
http://www.iaee.org/en/publications/ejsearch.aspx

Access Statistics for this article

More articles in The Energy Journal from International Association for Energy Economics Contact information at EDIRC.
Bibliographic data for series maintained by David Williams ().