Issues in Global Natural Gas: A Primer and Analysis

Author/Editor:

Bright E Okogu

Publication Date:

February 1, 2002

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

This paper discusses the rising profile of natural gas in global energy, factors constraining its further development, the gas contracting process, and the absence of a global market, which is analyzed in the context of the economic rent in the gas price and the opaque nature of gas contracts. A proposal for rationalizing the trade to ease these constraints is offered. Gas pricing, and factors driving demand are also analyzed using evidence from the literature. FDI can help to monetize some of the 'stranded' gas reserves, but success would depend on an investor-friendly climate, including appropriate tariff regimes in the domestic markets.

Series:

Working Paper No. 2002/040

Subject:

Commodities Economic sectors Fuel prices National accounts Natural gas sector Oil Oil prices Prices Transportation

English

Publication Date:

February 1, 2002

ISBN/ISSN:

9781451845983/1018-5941

Stock No:

WPIEA0402002

Pages:

36

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