«Problems of economics and management of oil and gas complex»

Special aspects of pricing at the liquefied hydrocarbon gases (LHG) market in the North-Western Europe

UDC: 620.9
DOI: 10.33285/1999-6942-2022-6(210)-55-61

Authors:

¹ National University of Oil and Gas "Gubkin University", Moscow, Russia

Keywords: liquefied hydrocarbon gas, pricing at the LHG market, arbitrage spread, price correlation, gas crisis, alternative resources

Annotation:

The article analyzes economic factors that directly and/or indirectly affect the pricing of the liquefied hydrocarbon gases (LHG) in the North-Western Europe (NWE). The study evaluates the correlation of LHG prices for oil, natural gas, naphtha, taking into account the propane-naphtha spreads, the NWE-USA arbitrage spread, as well as other factors such as seasonality, changes in the balance of supply and demand, the psychology of market participants. Based on the hypotheses considered in the article, the study proves that the fundamental factors affecting the price of LHG are better assessed in the short term than that of crude oil. Fundamental factors of this market will continue to have a primary impact on LHG prices, but the level of their impact will decrease.

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