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The relationship between spot and contract gas prices in Europe

Author

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  • Asche, Frank
  • Misund, Bård
  • Sikveland, Marius

Abstract

Following deregulations in the European gas market, spot trading of natural gas has been established in the UK, Belgium and the Netherlands, while long-term contracts remain the dominant pricing process in continental Europe. In this paper we investigate the degree of market integration between the three spot markets, the contract gas price in Germany and the oil price. The results indicate a highly integrated market, and there is no evidence of an independent price determination process for natural gas.

Suggested Citation

  • Asche, Frank & Misund, Bård & Sikveland, Marius, 2013. "The relationship between spot and contract gas prices in Europe," Energy Economics, Elsevier, vol. 38(C), pages 212-217.
    • Handle: RePEc:eee:eneeco:v:38:y:2013:i:c:p:212-217
    DOI: 10.1016/j.eneco.2013.02.010
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    References listed on IDEAS

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    More about this item

    Keywords

    Gas spot market; Long term gas supply contracts;

    JEL classification:

    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy

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