The Romanian Gas Hub in the Context of an Emerging Global Gas Market

Filip-Alexandru Negreanu-Arboreanu

Romanian Economic Journal, 2019, vol. 22, issue 72, 126-141

Abstract: Gas markets are undergoing significant changes which are triggered by general supply diversification and the accelerated growth of LNG transports, as well as the abundance of global gas resources enabled by the US shale revolution. Europe has been gradually shifting over the past 30 years its traditionally monopolistic gas markets towards full market integration in the Single Energy Market. Eastern Europe is still lagging behind these global gas trends due to poor interconnections and a high dependence on Russian gas supplies. Romania has recently discovered significant gas reserves in the Black Sea which would enable it to become a gas exporter. The build-up of the Romanian gas hub would secure a diversified gas supply for Central and South-eastern Europe. The Romanian gas hub would work as an arbitrage mechanism between gas prices of the northern corridors bringing Russian gas to Western Europe, and the prices of the new Southern Gas Corridor. This position would allow Romania to offer a price correlation to global gas markets for isolated continental countries in Central and South East Europe.

Keywords: gas hub; gas market; global gas market; gas price convergence; gas price arbitrage (search for similar items in EconPapers)
JEL-codes: L11 N74 Q43 Q48 (search for similar items in EconPapers)
Date: 2019
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