Possibility of potential coalitions in gas exports from the Southern Corridor to Europe: a cooperative game theory framework

Abstract

AbstractThe dependence of European gas imports on Russia has led European countries to consider different ways to compete with Russia. One of the most important of these is the Caspian and Middle East countries, which delivers gas to Turkey via the southern corridor and then to other European countries. The region's gas supplies are still in dispute. One of the main concerns of European countries is to choose the best option for gas supply for this project. Currently, not only Azerbaijan exports to Europe, but other countries are also interested in European countries due to concerns over its ability to continue exporting. Therefore, in addition to Azerbaijan, Iran, Turkmenistan and Iraq are among the main gas supply options in the region. In the present article, with the approach of cooperative game theory, different gas export coalitions from this region to Europe have been investigated and bargaining power of all countries has been obtained through Shapley solution. The results show that Turkey plays the most important role in the gas pipeline network as a transistor, because without this country no area would be able to export gas to Europe. It also appears that the pipelines could increase the bargaining power of one country, which could increase gas transmission capacity without the need for a country other than Turkey.