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European Gas Market Structure

Author

Listed:
  • Milan Hudak

    (Department of Economics, Faculty of Economics, University of Economics, Prague, Czech Republic)

Abstract

Focusing on the evolving roles of stakeholders and price-setting mechanisms, this paper sheds light on how the European Union gas market has shifted from dominant oil-linked contracts to a more diversified, market-driven system. Producers, TSOs, DSOs, shippers, traders, and consumers all contribute to a complex network in which efficient balancing is crucial to maintaining continuous gas flows. The maturing of gas hubs, particularly TTF and THE, has fostered spot and short-term trading, thereby offering enhanced liquidity and flexibility and introducing new forms of price volatility. EU-level policies, including unbundling requirements and harmonised network codes, have underpinned these developments, shaping transparent risk management strategies, derivatives trading, and storage usage. Although increased competition has yielded benefits in pricing and reliability, persistent regional discrepancies, such as varying infrastructure investment levels and differences in balancing practices, continue to influence

Suggested Citation

  • Milan Hudak, 2025. "European Gas Market Structure," International Journal of Social Sciences, European Research Center, vol. 14(1), pages 1-22, December.
    • Handle: RePEc:aop:jijoss:v:14:y:2025:i:1:p:1-22
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    References listed on IDEAS

    as
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    Keywords

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    JEL classification:

    • L95 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Gas Utilities; Pipelines; Water Utilities
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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