Gas Market Research Articles

Пространственная организация рынков продукции топливно-энергетического комплекса России

The article analyzes the markets of fuel and energy complex products in Russia, i.e. of oil, natural gas, coal, electricity, and heating energy. Among the emphasized features of the markets of fuel and energy complex products are the manifold of regulatory influences, the dependence of geographical boundaries of the markets on the development of the corresponding infrastructure, the presence of vertical and horizontal integration, the high dependence of the national markets of the complex products on the corresponding world markets. The combination of the described features on each of the markets of fuel and energy complex products forms a variety of conditions for their functioning within the boundaries of the national economy, which sets the direction of commodity flows and determines the development of the relevant transport infrastructure, which, in turn, are manifested in the spatial organization of product markets (their geographical segmentation). The research algorithm consisted of the analysis of sectoral markets based on the following parameters: properties of energy as a commodity, resource base, characteristics of producers, consumption structure, infrastructure development, and institutional conditions. Based on the combination of parameters, segments were identified for each of the fuel and energy complex product markets. The oil, natural gas, coal and heating market have two segments each: western and eastern. In the coal market, the eastern segment itself has two segments: eastern coastal and eastern mainland. The electricity market has three segments: western, eastern and northeastern. The analysis allows us to identify the western and eastern segments in each of the fuel and energy complex product markets, which are diametrically different in their characteristics. The stability of the distribution of the country’s territories by segments suggests the presence of invariants determined by the parameters of physical space, the effect of which is weakly susceptible to regulatory influences

Shaping the Eurasian Gas Market: the Geopolitics of Energy Market Regulation

Shaping the Eurasian Gas Market: the Geopolitics of Energy Market Regulation

Sudden Stop: Supply and Demand Shocks in the German Natural Gas Market

Sudden Stop: Supply and Demand Shocks in the German Natural Gas Market

ДОСЛІДЖЕННЯ ЕКОНОМІЧНОЇ ЕФЕКТИВНОСТІ СТВОРЕННЯ БАЛАНСУЮЧИХ ГРУП НА РИНКУ ПРИРОДНОГО ГАЗУ

In the circumstances of the Ukrainian natural gas market crisis, companies engaged in the wholesale and retail of natural gas confronted with the following challenges: debts for payment of natural gas supplied, decrease in business profitability. At the same time, expenses for wages, office rent, payment of utilities and other operating expenses remain constant. Therefore, the search for ways to reduce the losses of the enterprise that supplies energy resources is important for the stable operation of the enterprise and the economy of Ukraine as a whole. One of them minimizing imbalances. Accurate forecasting and planning play a pivotal role in minimizing imbalances. Utilizing advanced forecasting tools and methodologies enables suppliers to predict consumption patterns more precisely, thus reducing the need for costly imbalance coverages. Offering flexible contract terms to customers allows suppliers to adjust supply according to demand fluctuations more efficiently, mitigating the impact of imbalances. Moreover, some suppliers provide balancing services to assist smaller participants in managing their imbalances effectively. By pooling resources and optimizing operations across multiple participants, overall costs associated with imbalance coverage can be minimized. Integration of advanced technologies, such as real-time monitoring, data analytics, and automation, enhances operational efficiency and enables faster response to imbalances, thereby reducing associated costs. Losses on commercial balancing can now be up to 26% of the margin. The work reveals how natural gas supplier companies lose money due to imbalances and analyzed losses during self-balancing of companies with different supply volumes. Joining a balancing group to reduce losses to cover imbalances is considered. Different options of balancing groups are modeled and analyzed depending on the number of participants, their supply capacities, and the possibility of savings for each option of the balancing group is demonstrated. An analysis of balancing losses for each individual company revealed a significant difference in balancing losses. An assumption is made about the importance of self-balancing. The possibility of reducing losses on imbalances up to 79%, provided that the group has from two to six participants, compared to balancing without a balancing group, has been demonstrated. Which in the context of marginality gives a reduction in margin losses from 20,98% to 4,50%. Which is a 4,66 times reduction in balancing losses. It has been confirmed that participation in a balancing group is appropriate for any two or more participants, provided that there are two participants in the group, then joining the balancing group allows you to reduce commercial balancing losses by up to 90%, depending on the number of participants in the balancing group, the volume of their supplies and balancing qualities.

The European Energy Crisis and the Consequences for the Global Natural Gas Market

The European Energy Crisis and the Consequences for the Global Natural Gas Market

Expectations and Speculation in the Natural Gas Markets

Expectations and Speculation in the Natural Gas Markets

LNG; The Key to a World Natural Gas Market

LNG; The Key to a World Natural Gas Market

Spatiotemporal Evolution and Market Dynamics of the International Liquefied Natural Gas Trade: A Multilevel Network Analysis

Natural gas is considered a transitional energy source in the transition to clean energy owing to its clean, efficient, and ecologically beneficial properties. The trade of liquefied natural gas (LNG) serves as the backbone of the global natural gas trade and significantly influences the dynamics of the global energy trade system. This paper constructs long-term global LNG trade networks, and explores the spatiotemporal evolution and topological structures of the international LNG trade by utilizing multilevel network analysis methods, to provide insights for comprehensively understanding the market dynamics of the global LNG trade system. The findings indicate the following: (1) The global LNG trade volume shows an overall upward trend, and the global LNG trade network exhibits uneven spatial distribution, clear hierarchical differentiation, and an increasingly complicated structure. Global LNG trade is gradually changing from regionalization to globalization, and the international LNG market is undergoing structural reshaping. (2) The global LNG trade network continues to expand in size and density, and the rapidly growing LNG supply and trade relations are driving the formation of the global natural gas market. (3) Global LNG trade is still in a phase of rapid change, with the global efficiency of the network increasing and then decreasing. The trade network has traditionally been centered on ten countries, including Japan, South Korea, the United States, and Qatar. (4) The global LNG trade network exhibits clear core-periphery structures with considerable polarization effects, and the trade network structure is continuously evolving and is growing unbalanced. Finally, we put forward relevant policy suggestions to promote global LNG trade interconnectivity and enhance environmental protection and respond to global climate change.

Gas Diversification as a Way of Strengthening the National Security of the Republic of Serbia

The increasing importance of energy supply, particularly gas, has transformed it from solely an energy and political concern to national security. This shift has been particularly evident following the Russian Federation's military aggression against Ukraine in recent years. This paper supports the hypothesis that gas diversification in the Republic of Serbia is crucial for enhancing the country's energy security index and strengthening its national security and state sovereignty. Serbia can safeguard its interests by reducing the political influence exerted by the Russian Federation, which is a direct result of its dominant position in the gas and oil market. To substantiate this hypothesis, the article will utilise well-established and widely used indices for calculating energy security, such as the Shannon-Wiener and Energy Security Index. Moreover, it will demonstrate the interdependence between non-compliance with sanctions imposed on the Russian Federation due to energy dependence and the hindrance of Serbia's European integration progress, explicitly concerning the non-opening negotiation chapters relating to foreign and security policy. The data used in the paper will be derived from the Law on the Availability of Data of Public Importance and official documents of the Republic of Serbia, ensuring a reliable and evidence-based analysis.

DEVELOPMENT OF NATURAL GAS EXCHANGE INFRASTRUCTURE: EUROPEAN EXPERIENCE AND UKRAINE

The aim of this paper is to summarise the conditions and problems of the development of the gas market exchange in European countries, and to identify the necessary elements for its successful functioning in Ukraine. Methodology. The study is based on the historical and logical methods of analysing the development of the infrastructure of energy exchanges in Germany, Austria, Italy, Romania and Poland. The paper uses empirical (observation, comparison) and theoretical (analysis, synthesis, systematisation, generalisation) research methods. In general, the years of analysis cover the period from 2007 to 2023 due to the launch of natural gas trading on the analysed exchanges. In order to analyse the dynamics and show the evolution of natural gas trading on the European energy exchanges, information on volumes and structure of the natural gas segment was collected from their annual reports, official press releases and newsletters for the years 2007-2021 (EEX and EEX Group), 2019-2022 (CEGH, also using Energy Community data), 2021-2022 (GME), 2020 (ANRE, TGE). To analyse the dynamics of the UEEX development, a sample of data for 7 years has been presented, collected from annual reports, press releases and additional sources of analytical data due to the lack of official data for some periods. In order to examine changes in the structure of UEEX natural gas trading volumes, monthly trading volumes for 2020-2023 were collected and grouped by short-term and medium- and long-term products. Results. This paper examines the importance of exchange trading in the natural gas market. Based on the experience of European countries, such as EEX in Germany, CEGH GE in Austria and GME in Italy, BRM in Romania, and TGE in Poland, it can be said that each country has its own characteristics and path to a liberal market. The German and Austrian cases showed that cooperation and integration inevitably lead to the growth of exchanges, as happened with the start of the PEGAS cooperation, when the Italian government-regulated exchange did not show such a rapid growth trend. Other elements that ensured the development of exchange trading in natural gas were identified: diversification of the market and commodity portfolios, improved clearing, a reliable control and accountability system, a combination of market mechanisms and state supervision, and the development of technology. It was concluded that Ukraine has the prerequisites and potential for the functioning of the natural gas market on a liberal basis. At the same time, there is a need to further develop the institutional environment for exchange trading, and the above elements could be areas for improvement. The practical implications are that an energy exchange is a key institution of a liberal gas market, and a strong exchange infrastructure ensures efficient trade and regional integration. Value/originality. The analysis of the experience of European countries allows to draw conclusions about the successful development of infrastructure and provide recommendations for the development of the Ukrainian energy exchange, as well as identify areas for the development of regulatory policy to ensure the successful launch of exchange trading in gas on national markets.

Prospect forecast for drilling ultra-deep wells in difficult geological conditions of western Turkmenistan

The relevance of the study is related to the growing need for efficient production of hydrocarbons in the difficult geological conditions of western Turkmenistan to ensure energy security and economic development of the region in the changing global oil and gas market. The purpose of the study is to conduct a comprehensive analysis of the geological, technical, and economic aspects of drilling ultra-deep wells in difficult geological conditions of western Turkmenistan to assess their potential feasibility and contribution to the energy infrastructure of the region. The study used analytical, functional, and statistical methods, classification, and synthesis. The prospects for drilling wells in difficult and extreme geological conditions of western Turkmenistan were identified. The analysis of the current state of prospecting and exploration in this region was carried out, while the main attention was paid to the investigation of the main difficulties faced by drillers when working with deep horizons of the reedbeds. As a result of the conducted research, general principles and recommendations aimed at overcoming these problems were developed. Despite the successful introduction of modern technical and technological innovations that meet international standards when drilling deep and ultra-deep wells in the West Turkmen depression, the study emphasized that the existing drilling problems have not yet been eliminated. This study will provide valuable recommendations and information for making informed decisions when developing and implementing projects for drilling ultra-deep wells in difficult geological conditions, contributing to effective resource management and development of the oil and gas industry in western Turkmenistan.

The Spill-over Effects between Oil and Gas Marketing and Exploration Firms of Pakistan Stock Exchange (PSX) KSE-100 index: During the Times of COVID-19 and Russian-Ukraine War

This study aims to trace the mean and volatility spillover effects between oil and gas marketing and exploration firms registered in KSE-100 index in the Pakistan Stock Exchange (PSX). Daily data of 8 firms (MGAS, PPL, PKOL, APL, HITE, HASC, PSO, and SHEL) for the period of 30th November 2019 to 30th November 2022. The whole data set is divided into two subsets, one is after COVID-19 (after 26th February2020) and the other is after the start of Russian-Ukraine war (after 24th February 2022). After that Hamao et.al (1990) uni-variate ARCH-GARCH type modeling is employed to the data in order to explore the dynamic linkages between the Marketing and Exploration firms (oil and gas) registered in KSE-100 index (PSX). The results from the data sets are indicating that there is mix movements between the oil and gas marketing and exploration firms in the KSE-100 index (PSX). The results are providing evidence there is Mean spill over from MGAS to APL, HASC, HITE, PSO, and SHEL. From PKOL to APL, HASC, HITE, PSO, and SHEL. From PPL to APL, HITE, PSO. And there is Volatility spill over from MGAS to APL, HITE, PSO and SHEL. From PKOL to APL, HITE, PSO, and SHEL. From PPL to APL, HASC, HITE, PSO, and SHEL. This linkage is developed between MGAS, PPL, and PKOL to APL, HASC, HITE, PSO, and SHEL due to the co-movements among the mentioned firms. The Augmented Dickey-Fuller Test is run on the return series and the test is insignificant in all series which is indicating that our return series are stationary at level, ARCH-LM test is run on return series and ARCH-LM test is also insignificant in all the return series means that there is no heteroskedasticity present in the return series.

Measurement technologies for pipeline transport of carbon dioxide-rich mixtures for CCS

Carbon capture and storage (CCS) is necessary to achieve the long-term temperature goals of the Paris Agreement. The mass of CO₂ that will be transported for permanent storage by 2050, to meet the International Energy Agency (IEA)'s Sustainable Development Scenario, is of a similar scale to the current global market of natural gas. Such trading levels require significant and expedited technological efforts. The urgency of the climate goals requires technological innovations to build from existing technologies operating in similar environments. The present work aims to be a stepping stone towards the realisation of the CCS business, which relies on accurate metrology and tight control systems. Here, various established technologies are screened, and for each principle, their possible niches of operation within CCS are identified. Eight technologies were shortlisted and assessed against selected benchmarking criteria. The most promising solutions for the various operative scenarios encompassing bulk flow measurement, structural flow identification, composition, and leak detection are described. All surveyed technologies require further experimental verification for one or more of the operating schemes throughout the CCS value chain. A roadmap to further explore the applicability of various measurement principles in CCS is also provided.

Вибір організаційно-економічного механізму забезпечення фінансової безпеки газорозподільних підприємств

Changes in the natural gas market related to the implementation of the requirements of the European Union's Third Energy Package affect the financial security of gas distribution companies. Changes in the natural gas market related to the implementation of the requirements of the European Union's Third Energy Package affect the financial security of gas distribution companies. The purpose of the article is to develop a scientific and methodological approach to the selection of an organizational and economic mechanism for ensuring the financial security of gas distribution enterprises, which takes into account the combination of their status as natural monopoly entities and enterprises, and to substantiate practical recommendations for its implementation. A set of methods of scientific cognition was used, namely: the fundamental provisions of the theory of finance, probability theory and mathematical statistics, and the method of adaptive forecasting. The choice of the optimal type of organizational and economic mechanism for ensuring the financial security of gas distribution enterprises is proposed to be carried out taking into account the phased withdrawal from the financial crisis. If the type of mechanism is used effectively, the enterprise proceeds to implement a preventive mechanism; if it is ineffective, it is necessary to review the measures or proceed to the liquidation procedure; if the preventive mechanism is used effectively, the enterprise proceeds to the stabilization mechanism or a radical one. The scientific and methodological approach to the choice of an organizational and economic mechanism for ensuring the financial security of gas distribution enterprises in Ukraine has been proposed. It is aimed at consistent and targeted implementation of a set of preventive, stabilization and radical measures that enables prevention of financial risk, timely assessment and forecasting of its level, as well as development, implementation and monitoring of the relevant program. The implementation of the proposed scientific and methodological approach in the practical activities of gas distribution enterprises involves the preparation of substantive information, analytical and methodological support, which consists in a comprehensive analysis of financial security.

Resource Potential of the Oil and Gas Complex of the Republic of Sakha (Yakutia) and Its Development Prospects

Abstract. In recent years, the Russian oil and gas complex has been undergoing sanctions and restrictions related to the political situation in the country and in the world, which negatively affects the economic development of the country. The consequences of sanctions include: disruption of logistics of export supplies of oil and gas raw materials, replacement of Russian hydrocarbons with supplies from other countries, reduction of foreign investment and participation of foreign companies in Russian oil and gas projects, restriction of imports for the supply of equipment and technologies, etc. First of all, these problems cause the need to expand sales markets and build new production and logistics chains, replacing imported equipment and technologies with domestic ones. In order to solve the difficult economic relations that have arisen with the EU countries, it is proposed to redirect the market for oil and gas raw materials towards Asian countries. In this regard, the study of oil and gas resources of the Far East, including the Republic of Sakha (Yakutia) is a very relevant task. The purpose of this article is to identify the level of availability of mineral resources of the oil and gas complex. The object of the study is the oil and gas complex of the Republic of Sakha (Yakutia): industrial balance reserves and forecast resources of oil and gas fields in the region, and the main subsurface users of oil and gas fields. The subject of the study is the analysis and assessment of the state of the mineral resource base of the oil and gas resources of the region and the prospects for its development. Based on the analysis of the current state of the potential of the oil and gas resources of the Republic of Sakha (Yakutia), as well as a review of the global oil and gas market, promising directions for the development of the regional oil and gas complex are identified in the article.

Перспективы технологического развития нефтесервиса для освоения нефтегазовых месторождений арктического Севера

The article discusses the key challenges associated with the economic development of the oilfield service industry within the climatic, geological, and infrastructural conditions of the Arctic. The evaluation of the Arctic's contribution to the total hydrocarbon production in Russia is an important research problem, which is particularly relevant amidst the current international political tensions. The study aims to unveil aspects of research and development (R&D) prospects of oilfield services in Russia's Arctic regions and adjacent territories. The research identifies characteristic features of economic development associated with economic activity risks. These include infrastructure and technological constraints linked to the distance from federal R&D and industrial centers; insufficient financial resources and experience for large project implementation by local authorities; the intricacy and labor intensity of work, coupled with a shortage of specialists possessing the necessary skills. The study establishes that the complexity of developing Arctic oil and gas fields is mitigated by the application of innovations and highlights the vulnerability of domestic companies to import supplies, which are currently inaccessible due to Western sanctions. The results presented offer a comprehensive view of the promising facets of the innovation-driven and technological development of the oilfield services industry in the Arctic. They propose specific measures geared towards enhancing production efficiency in the oil and gas and oilfield services sectors for implementation by the government. The study's conclusions constitute its scientific novelty and affirm that the sector under consideration is characterized by the following aspects: 1) the demanding nature of work necessitating substantial financial assets and professional competencies of often scarce labor market participants, alongside the utilization of innovative technologies to curtail production costs; and 2) a constrained pool of oil and gas market participants diminishing competition in the oilfield services market and enabling vertically integrated oil companies to dictate prices to service organizations, thus limiting opportunities for the industry's innovation-driven and technological development. The study's conclusions hold significant practical potential and are recommended for incorporation into territorial, regional, and federal programs for the social and economic development of Arctic regions. These findings contribute to the innovation-driven and technological revitalization of the oilfield services industry, an integral element in developing the resource base of Northern territories. Additionally, they provide avenues for further scientific exploration, delving into logistic, financial, technological, corporate, and other economic aspects specific to participants in forthcoming development processes.

Supply Chain Disruption Risk and Market Performance in Nigeria: A Case of Oil and Gas Marketing Companies

Purpose: Studies across developed and emerging economies alluded to the persistent decline in the performance of oil and gas marketing firms, which had been attributed to both micro-economic and macro-economic factors. The objective of the study was to determine the effect of supply chain disruptions on market performance of selected oil and gas marketing companies in Lagos State, Nigeria.
 Materials and Methods: The study adopted a survey research design. The total population of the study was 1,044 full-time employees of five selected oil and gas marketing companies in the downstream sector of the petroleum industry in Nigeria. The study sampled three hundred and sixty-two (362) respondents, who participated in the study. Stratified random sampling method was adopted, because it ensures less homogeneity, and a true representative of the sample, thereby the accuracy of statistical results can be higher than that of simple random sampling. Structured questionnaire was used to collect the primary data from the sample size. The research targeted 362 respondents in the survey, while 322 copies of the questionnaire administered were filled and returned. Therefore, the response rate was 91.7%.
 Findings: The three independent variables that were studied, explained 4.8% of the market performance as represented by adjusted R-square. This, therefore, meant that other variables not studied in this research contributed 95.2% of the market performance.
 Implications to Theory, Practice and Policy: The study recommended that oil and gas marketing companies should increase their commitment to adopting scenario planning and supply chain mapping strategies, in order to mitigate risks threatening their supply chains, in order to accomplish better performance.

Defining trends in the evolution of the Russian gas market

The new “driving force” of the liberalization of the conditions for the functioning of the gas sector associated with demonopolization and the formation of an effective structure of the domestic gas market with a high level of competition and fair principles of the organization of natural gas trade for Russian consumers are the ongoing changes in the economic situation in the global energy market. Against the background of the expected decline in pipeline gas exports to Europe (the volume of decline may amount to 100 billion cubic meters in the medium term) it is important to focus efforts on the development of the domestic gas market, since the task in these conditions is more urgent than ever. First of all, to accelerate the transition to market pricing mechanisms (except for the population) using indicative prices on the stock exchange and within the framework of inter-fuel competition. Currently, gas prices in the domestic market are subsidized by exports, which, as mentioned above, is going to decrease, which in turn will lead to a decrease in such subsidies, and accordingly, there will be a need for higher rates of price growth in the domestic market. The importance of further development of gas exchange trading in Russia is emphasized on various government platforms. The main guidelines for improving the exchange mechanisms for the sale of natural gas are contained in the “National Plan (Roadmap) for the development of competition in the Russian Federation for 2021-2025”. It should be noted that the development of gas exchange trading should take place by increasing the economic attractiveness for participants, creating favorable economically conditioned prerequisites for an equal supply of gas to the exchange for all sellers, as well as developing an appropriate regulatory framework.

Feasible ways of future development of Oil and Gas Research Institute of the Russian Academy of Sciences in cooperation with Russian gas companies

At the 20th Anniversary International Forum of the Russian Gas Society “The Gas of Russia 2022 – Turn to the East” held in December 2022, many ideas were expressed about the current state of the gas market. However, no approach at all for the further development of the country’s gas industry was put forward. This article is polemical, but sets out one possible direction for the competitive development of Russia’s oil and gas markets. To a certain extent, the article is a review of innovative technologies by Oil and Gas Research Institute of the Russian Academy of Sciences aimed at solving everyday problems of gas producing companies at various fields. It offers a set of already tested technologies to significantly reduce operating costs and improve the efficiency of gas field development in various PT conditions.

A flexible methanol-to-methane thermochemical energy storage system (TCES) for gas turbine (GT) power production

This study introduces an innovative solution to address the challenges arising from the volatile natural gas market and the growing integration of renewable energy sources within the industrial sector. The research strives to confront this challenge by including renewable methanol (CH3OH) and converting it into methane (CH4), with an intermediate step involving synthesis gas (CO/H2) by using concentrating solar power. This approach provides a sustainable and adaptable solution to reduce dependence on natural gas. The process entails a methanol decomposition reaction at moderate temperatures (<350 °C). Subsequently, the synthesis gas is compressed to 40 bar, stored, and discharged through a methanation process that can be conducted at high temperatures (>500 °C). The resulting methane is used as fuel for gas turbines and can also serve as feedstock in the chemical industry. The simulations were conducted in ASPEN HYSYS and yielded overall system efficiencies exceeding 29% and roundtrip efficiencies of 44%. Through techno-economic optimisation of the reaction conditions, competitive levelized fuel costs (LCOF) of €172/MWh and future LCOE values of €145/MWh were achieved. These findings present an innovative strategy for integrating gas turbine cycles and additional conversion pathways for green methanol.