Liquefied natural gas and gas storage valuation: Lessons from the integrated Irish and UK markets

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Title: Liquefied natural gas and gas storage valuation: Lessons from the integrated Irish and UK markets
Authors: Devine, Mel T.Russo, Marianna
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Date: 15-Mar-2019
Online since: 2019-08-12T07:46:37Z
Abstract: To guarantee European countries greater access to competitive energy sources, the European Union has identified new infrastructures as Projects of Common Interest (PCIs). This paper aims to evaluate the implications for consumers of new investments in liquefied natural gas (LNG) import capacity and gas storage capacity. We utilise a stochastic mixed complementarity problem model with daily timesteps, incorporating stochastic natural gas supply cost and demand scenarios. Therefore, we assess the expected benefits for consumers of a diversified natural gas supply, and their sensitivity to changing market conditions. We use the integrated UK-Ireland gas system, which represents an ideal framework to evaluate new energy routes. We underscore the complementary of LNG and gas storage investments to manage short-term peak loads and long-term seasonal loads, and reduce energy bills. This study has implications for decision- and policy-makers when addressing new gas infrastructure development and the flexibility of energy systems.
Funding Details: Science Foundation Ireland
Type of material: Journal Article
Publisher: Elsevier BV
Journal: Applied Energy
Volume: 238
Issue: Appl Energy 88 12 2011
Start page: 1389
End page: 1406
Copyright (published version): 2019 Elsevier
Keywords: Natural gas marketsLiquefied natural gasGas storageStochastic mixed complementarity problem
DOI: 10.1016/j.apenergy.2019.01.157
Language: en
Status of Item: Peer reviewed
Appears in Collections:Electrical and Electronic Engineering Research Collection

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