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A Rough Analysis: Valuing Gas Storage

Author

Listed:
  • Monica Giulietti
  • Luigi Grossi
  • Michael Waterson

Abstract

This paper studies the impact of a fire in 2006 which removed the possibility of access to the Rough gas storage facilities covering over 80% of total UK storage, at a time when major withdrawals from storage would have likely taken place. Implicitly, it shows the value of such gas storage facilities, in a country with relatively little storage, where we might therefore see a considerable impact. We find that the major effect on activity was through an increased sensitivity of supply to prices and an increased variance in this sensitivity, not through non-price rationing.

Suggested Citation

  • Monica Giulietti & Luigi Grossi & Michael Waterson, 2012. "A Rough Analysis: Valuing Gas Storage," The Energy Journal, , vol. 33(4), pages 118-142, October.
    • Handle: RePEc:sae:enejou:v:33:y:2012:i:4:p:118-142
    DOI: 10.5547/01956574.33.4.6
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    References listed on IDEAS

    as
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