An Integrated Asian Natural Gas Market: Potentials and Policy Implications

Youngho Chang () and Yanfei Li
Additional contact information
Yanfei Li: Nanyang Technology University

from Economic Research Institute for ASEAN and East Asia (ERIA)

Abstract: In this study, we ask two questions: First, what would be the trade pattern of natural gas in the East Asia Summit region when an integrated and competitive market of natural gas is introduced? Second, what would be the impacts of additional infrastructure, including pipelines and LNG terminals, in the region? Investigating these questions under a consistent computational framework, this study contributes to justifying and motivating the policies which promote regional integration of natural gas market and investment in new infrastructure. We find that with an integrated and competitive regional natural gas market, supply should come more from within the region, which has cheaper costs of transportation than from external suppliers with relatively cheap costs of production and transportation. The model thus implies clear and significant welfare gains in moving towards such an integrated market. Additionally, new infrastructure clearly increases general social welfare and brings new trade opportunities to specific countries in the region. Relevant countries thus find support for their investment in the expansion of the regional supply network for natural gas, including both pipeline and LNG.

References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.eria.org/publications/research_project_ ... tural_Gas_Market.pdf
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.eria.org/publications/research_project_reports/images/pdf/y2010/no25/9_Ch9_Integrated_Asian_Natural_Gas_Market.pdf [301 Moved Permanently]--> https://www.eria.org/publications/research_project_reports/images/pdf/y2010/no25/9_Ch9_Integrated_Asian_Natural_Gas_Market.pdf)

Related works:
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:era:chaptr:2010-rpr-25-09

Access Statistics for this chapter

More chapters in Chapters from Economic Research Institute for ASEAN and East Asia (ERIA) Contact information at EDIRC.
Bibliographic data for series maintained by Ranti Amelia ( this e-mail address is bad, please contact ).