Time Commitments in LNG Shipping and Natural Gas Price Convergence

B-Tier
Journal: The Energy Journal
Year: 2020
Volume: 41
Issue: 2
Pages: 29-46

Authors (3)

Atle Oglend (not in RePEc) Petter Osmundsen (Universitetet i Stavanger) Tore Selland Kleppe (not in RePEc)

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Inter-continental Liquefied Natural Gas (LNG) trade can facilitate the development of a global natural gas market. However, in addition to explicit shipping costs, such trade requires time commitments in shipping due to the long hauls of many shipping routes. We show that this time commitment adds an additional economic cost to LNG shipping, and creates a positive relationship between the economic cost of LNG trade and regional natural gas price spreads. Necessary time commitment therefore augments the other costs of LNG trade, and contributes to weaken the ties between global natural gas markets.

Technical Details

RePEc Handle
repec:sae:enejou:v:41:y:2020:i:2:p:29-46
Journal Field
Energy
Author Count
3
Added to Database
2026-01-26