Security Of Gas Supply In Open Markets: Lng And Power At A by Organization for Economic Cooperation & PDF

By Organization for Economic Cooperation &

ISBN-10: 9264108068

ISBN-13: 9789264108066

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Extra resources for Security Of Gas Supply In Open Markets: Lng And Power At A Turning Point

Sample text

Over time, Japan has developed and maintained strong economic and political ties with the countries from which it imports gas always with a view to the interests of the supplying countries. Japan has also developed financial links with its LNG suppliers, by investing in liquefaction plants dedicated to export to Japan. PART C – ANNEXES In open gas markets security of gas supply is a subject for which responsibility is shared between all players involved, although they have 48 different roles to play.

This raises the issue of reliability of electricity supply in case of a gas supply disruption, and the question of possible back-up fuels for gas in power plants. The impact of a gas supply disruption on electricity security will depend on the flexibility developed in both systems. Although 50% of power capacity based on gas is multi-fired, the alternative fuel will be oil distillate, which is much more expensive than fuel oil. CCGT operators do not always have enough economic incentives to store the alternative back-up fuel (even for short periods).

However, open markets raise new issues. With market reforms, no one single entity is responsible for security of gas supply across the whole gas market; each company is responsible for its own customers only, and for its part of the gas chain (except for integrated companies). 33 Open markets will not by themselves value investment in insurance assets to ensure secure supplies to the end-consumer under lowprobability/high-impact events, for instance, extreme weather conditions or a large non-technical disruption of supplies.

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Security Of Gas Supply In Open Markets: Lng And Power At A Turning Point by Organization for Economic Cooperation &


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