Demand for storage of natural gas in northwestern Europe. Trends 2005-2030
AbstractThe seasonal demand for natural gas requires supply flexibility. This “swing” is now largely provided in northwestern Europe by indigenous production. Declining reserves will increase the dependency on imports from far-off sources, which are less flexible. Hence, flexibility must be provided by additional storage. We estimate that in 2030 between 10 (with no strategic storage) and 29 (with 10 per cent strategic storage for imports from non-EU countries) billion cubic meter of working gas volume will be required, in addition to the existing 40 billion cubic meters. This estimation is based on production and consumption forecasts for natural gas and observations of the relationship between the supply and demand of gas and the supply and demand of flexibility in the period 1995-2005. We provide different scenarios to check for the robustness of our results. We discuss the impact of third-party access to storage facilities on incentives to close the storage gap, as well as policy implications of strategic storage obligations.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Max Planck Institute for Research on Collective Goods in its series Working Paper Series of the Max Planck Institute for Research on Collective Goods with number 2006_9.
Length: 25 pages
Date of creation:
Date of revision:
Seasonal swing; strategic storage obligations; thirdparty access;
Find related papers by JEL classification:
- L98 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Government Policy
- L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
- Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Marc Martin).
If references are entirely missing, you can add them using this form.