Swing Suppliers and International Natural Gas Market Integration
This study explores the international natural gas market integration using the Engle–Granger cointegration and error correction model. Previous studies have suggested that liquefied natural gas (LNG) and oil-linked pricing with a long-term contract have played key roles in gas market integration, es...
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| Format: | Article |
| Language: | English |
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MDPI AG
2020-09-01
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| Series: | Energies |
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| Online Access: | https://www.mdpi.com/1996-1073/13/18/4661 |
| _version_ | 1797554344845901824 |
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| author | Sang-Hyun Kim Yeon-Yi Lim Dae-Wook Kim Man-Keun Kim |
| author_facet | Sang-Hyun Kim Yeon-Yi Lim Dae-Wook Kim Man-Keun Kim |
| author_sort | Sang-Hyun Kim |
| collection | DOAJ |
| description | This study explores the international natural gas market integration using the Engle–Granger cointegration and error correction model. Previous studies have suggested that liquefied natural gas (LNG) and oil-linked pricing with a long-term contract have played key roles in gas market integration, especially between European and Asian markets. There is, however, little discussion of the role of the emergence of a swing supplier. A swing supplier, e.g., Qatar or Russia, is flexible to unexpected changes in supply and demand in both European and Asian markets and adapts the gas production/exports swiftly to meet the changes in the markets. Qatar has been a swing supplier since 2005 in the global natural gas market. In 2009, Qatar’s global LNG export share reached above 30% and has remained around 25% since then. Empirical results indirectly support that the emergence of a swing supplier may tighten market integration between Europe and Asia. The swing supplier may have accelerated the degree of market integration as well, particularly after 2009. |
| first_indexed | 2024-03-10T16:29:39Z |
| format | Article |
| id | doaj.art-6c474fb72e9f48fba2b04c20866cb0c6 |
| institution | Directory Open Access Journal |
| issn | 1996-1073 |
| language | English |
| last_indexed | 2024-03-10T16:29:39Z |
| publishDate | 2020-09-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Energies |
| spelling | doaj.art-6c474fb72e9f48fba2b04c20866cb0c62023-11-20T12:55:14ZengMDPI AGEnergies1996-10732020-09-011318466110.3390/en13184661Swing Suppliers and International Natural Gas Market IntegrationSang-Hyun Kim0Yeon-Yi Lim1Dae-Wook Kim2Man-Keun Kim3SK E&S Co., Ltd., Seoul 03188, KoreaDepartment of Economics, Soongsil University, Seoul 06978, KoreaDepartment of Economics, Soongsil University, Seoul 06978, KoreaDepartment of Applied Economics, Utah State University, Logan, UT 84322-4835, USAThis study explores the international natural gas market integration using the Engle–Granger cointegration and error correction model. Previous studies have suggested that liquefied natural gas (LNG) and oil-linked pricing with a long-term contract have played key roles in gas market integration, especially between European and Asian markets. There is, however, little discussion of the role of the emergence of a swing supplier. A swing supplier, e.g., Qatar or Russia, is flexible to unexpected changes in supply and demand in both European and Asian markets and adapts the gas production/exports swiftly to meet the changes in the markets. Qatar has been a swing supplier since 2005 in the global natural gas market. In 2009, Qatar’s global LNG export share reached above 30% and has remained around 25% since then. Empirical results indirectly support that the emergence of a swing supplier may tighten market integration between Europe and Asia. The swing supplier may have accelerated the degree of market integration as well, particularly after 2009.https://www.mdpi.com/1996-1073/13/18/4661Engle–Granger error correctionnatural gasmarket integrationswing supplierQatar |
| spellingShingle | Sang-Hyun Kim Yeon-Yi Lim Dae-Wook Kim Man-Keun Kim Swing Suppliers and International Natural Gas Market Integration Energies Engle–Granger error correction natural gas market integration swing supplier Qatar |
| title | Swing Suppliers and International Natural Gas Market Integration |
| title_full | Swing Suppliers and International Natural Gas Market Integration |
| title_fullStr | Swing Suppliers and International Natural Gas Market Integration |
| title_full_unstemmed | Swing Suppliers and International Natural Gas Market Integration |
| title_short | Swing Suppliers and International Natural Gas Market Integration |
| title_sort | swing suppliers and international natural gas market integration |
| topic | Engle–Granger error correction natural gas market integration swing supplier Qatar |
| url | https://www.mdpi.com/1996-1073/13/18/4661 |
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