The Economics of Natural Gas Storage

This in-depth economic analysis of gas storage activities and their regulation in Europe covers four main topics: development of commercial storage; access regulation; capacity allocation and market power; storage and security of gas supply.

I remember that the idea of this book emerged ?rst in Toulouse, during the Third Conference on Energy Markets 3 years ago now. Anna Cret` ? gave a talk on a model dealing with seasonal gas storage in the USA, and Christian Von Hirschausen was her discussant. Both of them were devoting their efforts to understand the natural gas market in Europe and the relevant liberalization process. I found their interest in storage rather original, so I encouraged Anna to collect the most original cont- butions on this topic. Back in Milan with this idea in mind, she organized a working group at IEFE- Bocconi University, where she works. Then, during the following year, she - changed ideas and organized several meetings with the book's contributors. She regularly invited the most important Italian gas sector representatives to these me- ings, to make sure that the economic models were well suited to tackle the issues at stake in the European gas industry.

Presents an in-depth economic analysis of storage activities and their regulation in Europe Imparts profound knowledge about the European gas market Provides insights into theoretical models as well as policy/regulatory issues

Klappentext

Within the context of an evolving global market for natural gas and restructuring efforts in the European market, gas storage is an important element. Providing additional flexibility, promoting competition, and enhancing supply security are crucial factors for natural gas sector liberalization. Storage in Europe has come to the center of the energy policy debate mainly due to very cold temperatures in winter 2005/06 and gas price increases during that time period.

This book covers four main topics: development of commercial storage; access regulation; capacity allocation and market power; storage and security of gas supply. Each Chapter puts forth an innovative analytical model discussed or applied to realistically explain specific issues in one of the four biggest European gas consuming countries (France, Germany, Italy and the UK).

Inhalt
Gas Storage in Europe: Toward a Market-Oriented Approach.- Expected Vs. Observed Storage Usage: Limits to Intertemporal Arbitrage.- Natural Gas Storage and Market Power.- The Regulation of Access to Gas Storage.- Gas Storage and Security of Supply.- Final Remarks and Policy Recommendations.