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Perspectives of the European Natural Gas Markets until 2025

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Author Info
Franziska Holz
Christian von Hirschhausen
Claudia Kemfert

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Abstract

We apply the EMF 23 study design to simulate the effects of the reference case and the scenarios to European natural gas supplies to 2025. We use GASMOD, a strategic severallayer model of European gas supply, consisting of upstream natural gas producers, traders in each consuming European country (or region), and final demand. Our model results suggest rather modest changes in the overall supply situation of natural gas to Europe, indicating that current worries about energy supply security issues may be overrated. LNG will likely increase its share of European natural gas imports in the future, Russia will not dominate the European imports (~ share of 1/3), the Middle East will continue to be a rather modest supplier, the UK is successfully converting from being a natural gas exporter to become a transit node for LNG towards continental Europe, and congested pipeline infrastructure, and in some cases LNG terminals, will remain a feature of the European gas markets, but less than in the current situation.

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Publisher Info
Paper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 823.

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Length: 14 p.
Date of creation: 2008
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Publication status: Published in: The Energy Journal 30 (2009), Special Issue, 137-150
Handle: RePEc:diw:diwwpp:dp823

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Related research
Keywords: Natural gas; Europe; modeling; LNG; supply security;

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Find related papers by JEL classification:
L95 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Gas Utilities; Pipelines; Water Utilities
L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
F14 - International Economics - - Trade - - - Country and Industry Studies of Trade

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Maroeska G. Boots & Fieke A.M. Rijkers & Benjamin F. Hobbs, 2004. "Trading in the Downstream European Gas Market: A Successive Oligopoly Approach," The Energy Journal, International Association for Energy Economics, vol. 25(3), pages 73-102.
  2. Franziska Holz & Christian von Hirschhausen & Claudia Kemfert, 2006. "A Strategic Model of European Gas Supply (GASMOD)," Discussion Papers of DIW Berlin 551, DIW Berlin, German Institute for Economic Research. [Downloadable!]
    Other versions:
  3. Egging, Ruud & Gabriel, Steven A. & Holz, Franziska & Zhuang, Jifang, 2008. "A complementarity model for the European natural gas market," Energy Policy, Elsevier, vol. 36(7), pages 2385-2414, July. [Downloadable!] (restricted)
    Other versions:
  4. Ferris, Michael C. & Munson, Todd S., 2000. "Complementarity problems in GAMS and the PATH solver1," Journal of Economic Dynamics and Control, Elsevier, vol. 24(2), pages 165-188, February. [Downloadable!] (restricted)
  5. SMEERS, Yves, 2008. "Gas models and three difficult objectives," CORE Discussion Papers 2008009, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE). [Downloadable!]
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This page was last updated on 2009-12-2.


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