"Market Power and Spatial Arbitrage between Interconnected Gas Hubs"

14 September 2018
The Energy Journal

The economic integration of the restructured wholesale markets for natural gas is considered an important policy goal in the European Union to ensure a secure supply of natural gas

In a new article published in a top-field journal (The Energy Journal), Olivier Massol, Associate Professor at IFP School, and Albert Banal-Estañol, Professor at City University of London, examine the economic efficiency of the spatial arbitrages carried out between two regional markets for wholesale natural gas in Europe.

They develop an innovative methodology which is capable of breaking down the observed spatial price differences into factors such as transportation costs, transportation bottlenecks, and the imperfect nature of the competitive behavior of the arbitrators.

The article can be downloaded here.

A non-technical executive summary of that article is available here