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A Rough Analysis: Valuing Gas Storage

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  • Monica Giulietti, Luigi Grossi, and 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, and Michael Waterson, 2012. "A Rough Analysis: Valuing Gas Storage," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4).
    • Handle: RePEc:aen:journl:ej33-4-06
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    References listed on IDEAS

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    Cited by:

    1. Arthur Thomas & Olivier Massol & Benoît Sévi, 2019. "How are day-ahead prices informative for predicting the next day’s consumption of natural gas?," Post-Print hal-04319396, HAL.
    2. Nick, Sebastian & Thoenes, Stefan, 2014. "What drives natural gas prices? — A structural VAR approach," Energy Economics, Elsevier, vol. 45(C), pages 517-527.
    3. Mouli-Castillo, Julien & Heinemann, Niklas & Edlmann, Katriona, 2021. "Mapping geological hydrogen storage capacity and regional heating demands: An applied UK case study," Applied Energy, Elsevier, vol. 283(C).

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