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Spot sale of uncommitted LNG from Middle East: Japan or the UK?

Author

Listed:
  • Nikhalat-Jahromi, Hamed
  • Bell, Michael G.H.
  • Fontes, Dalila B.M.M.
  • Cochrane, Robert A.
  • Angeloudis, Panagiotis

Abstract

The importance of liquefied natural gas (LNG) is rising as demand for it grows rapidly and steadily due to growth in energy demand, the transition to a low carbon economy and the longer distances over which natural gas is now traded. Given its importance, this work proposes an optimization model that assists to decide on when and where LNG should be delivered by coordinating tanker type, assignment and routing, inventory management, contract obligations, arbitrage and uncommitted LNG. The model maximizes the profit mainly by taking advantage of price differences between different markets.

Suggested Citation

  • Nikhalat-Jahromi, Hamed & Bell, Michael G.H. & Fontes, Dalila B.M.M. & Cochrane, Robert A. & Angeloudis, Panagiotis, 2016. "Spot sale of uncommitted LNG from Middle East: Japan or the UK?," Energy Policy, Elsevier, vol. 96(C), pages 717-725.
    • Handle: RePEc:eee:enepol:v:96:y:2016:i:c:p:717-725
    DOI: 10.1016/j.enpol.2016.06.027
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    References listed on IDEAS

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    1. Lee, Henry, 2005. "Dawning of a New Era: The LNG Story," Working Paper Series rwp05-053, Harvard University, John F. Kennedy School of Government.
    2. Ozelkan, Ertunga C. & D'Ambrosio, Alfred & Teng, S. Gary, 2008. "Optimizing liquefied natural gas terminal design for effective supply-chain operations," International Journal of Production Economics, Elsevier, vol. 111(2), pages 529-542, February.
    3. Shahbaz, Muhammad & Lean, Hooi Hooi & Farooq, Abdul, 2013. "Natural gas consumption and economic growth in Pakistan," Renewable and Sustainable Energy Reviews, Elsevier, vol. 18(C), pages 87-94.
    4. Peter R. Hartley, 2015. "The Future of Long-term LNG Contracts," The Energy Journal, , vol. 36(3), pages 209-234, July.
    5. Ashton Hawk & Gonçalo Pacheco-De-Almeida & Bernard Yeung, 2013. "Fast-mover advantages: Speed capabilities and entry into the emerging submarket of atlantic basin LNG," Post-Print hal-00984860, HAL.
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    Cited by:

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