Gas pricing mechanism on selected natural gas markets
and its impact on energy security Cover Image

Wpływ kształtowania się cen na wybranych rynkach gazu ziemnego na bezpieczeństwo energetyczne
Gas pricing mechanism on selected natural gas markets and its impact on energy security

Author(s): Marcin Tarnawski
Subject(s): Business Economy / Management, Energy and Environmental Studies, Economic policy, International relations/trade, Financial Markets
Published by: Oficyna Wydawnicza KA AFM
Keywords: energy security; regional gas markets; the pricing mechanism

Summary/Abstract: The issue of energy security is today a major concern of social and economic life. However, it is not only the diversification of suppliers and ensuring the continuity of the rawmaterial supplies that pose a problem of security in the energy markets. The setting of prices on the market is a very important issue. In connection with the specificity of the natural gas market and the functioning of regional markets, there are no universal price mechanisms. The price of natural gas on the regional markets is formed in a different way. This study consists of three main parts. The first part concerns the debate on energysecurity, and the addressed topics will relate mainly to the mechanisms of price formation and their impact on safety. The second part is to present the specifics of the European market in terms of raw materials pricing, while the third part refers to the US market. Because of the limitations associated with the form of this study only the most important aspects of price-setting mechanisms in individual markets will be presented; the remaining subject will only be signalled. The main objective of this paper is to present the mechanisms of price formation on selected regional gas markets and to clarify the fundamental differences between them. The basic thesis of the article refers to the inability to standardize the price mechanism in the world because of the differences in regional markets.

  • Issue Year: XXII/2016
  • Issue No: 1
  • Page Range: 31-47
  • Page Count: 17
  • Language: Polish