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Network Industries and Social WelfareThe Experiment that Reshuffled European Utilities$
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Massimo Florio

Print publication date: 2013

Print ISBN-13: 9780199674855

Published to Oxford Scholarship Online: September 2013

DOI: 10.1093/acprof:oso/9780199674855.001.0001

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Testing the paradigm: Natural gas

Testing the paradigm: Natural gas

(p.194) 6 Testing the paradigm: Natural gas
Network Industries and Social Welfare

Massimo Florio

Oxford University Press

Chapter 6 considers natural gas, a relative latecomer in the reform process, and an industry that poses interesting policy issues, particularly in terms of security of supply. Traditional and new technological aspects are reviewed, including the role of liquefied natural gas (LNG) and shale gas in changing the international trade pattern. After an examination of the different policies and market structures in selected EU Member States, the empirical analysis of data suggests that the reforms have had no impact on consumer prices, or sometimes impacted in the wrong direction. Possible reasons are discussed, including the role of long-term oil-indexed contracts.

Keywords:   shale gas, LNG, international trade, long-term contracts, oil-indexed contracts

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