‘Foundations of Natural Gas Price Formation’ examines the fundamentals of natural gas price formation and the five principal features that make it unique in the world of commodities. It presents a model of hybrid gas pricing developed by Sergei Komlev from his detailed analysis of the interlinked impact of these features that is presented as a corrective to potential market failure. Using mainstream economic theory, the book presents hybrid-pricing mechanisms not previously analyzed. Through a failure to understand the role of hybrid-pricing, boosters of spot pricing mechanisms through gas hubs are promoting an incorrect understanding of gas markets that will lead to market failure and to potential critical supply shortages in the near-term future. ‘Foundations of Natural Gas Price Formation’ defends the system of oil-indexed pricing as an accurate, market-based mechanism that has stood the test of time.

‘Foundations of Natural Gas Price Formation’ examines the fundamentals of natural gas price formation and the five principal features that make it unique in the world of commodities. It presents a model of hybrid gas pricing developed by Sergei Komlev from his detailed analysis of the interlinked impact of these features that is presented as a corrective to potential market failure. Using mainstream economic theory, the book presents hybrid-pricing mechanisms not previously analyzed. Through a failure to understand the role of hybrid-pricing, boosters of spot pricing mechanisms through gas hubs are promoting an incorrect understanding of gas markets that will lead to market failure and to potential critical supply shortages in the near-term future. ‘Foundations of Natural Gas Price Formation’ defends the system of oil-indexed pricing as an accurate, market-based mechanism that has stood the test of time.

A volume on the pricing of gas in international trade. Gas accounts for around 25% of global energy demand and international gas trade is growing rapidly. The book covers the development of international gas pricing in all regions of the world where gas is traded, and considers whether gas could become a global market.

This book is open access under a CC BY 4.0 license. This book examines how China can increase the share of natural gas in its energy system. China’s energy strategy has global ramifications and impact, and central to this strategy is the country’s transition from coal to gas. The book presents the culmination of a two-year collaboration between the Development Research Center of the State Council (DRC) and Shell. With the Chinese government’s strategic aim to increase the share of gas in the energy mix from 5.8% in 2014 to 10% and 15% in 2020 and 2030 respectively, the book outlines how China can achieve its gas targets. Providing both quantifiable metrics and policy measures for the transition, it is a much needed addition to the literature on Chinese energy policy. The research and the resulting recommendations of this study have fed directly into the Chinese government’s 13th Five-Year Plan, and provide unique insights into the Chinese government and policy-making. Due to its global impact, the book is a valuable resource for policy makers in both China and the rest of the world.

The intent of this book is to educate the reader about the vast complexities of the oil and gas industry and to motivate involvement in domestic oil and gas development, production and refinement. Explains the industry in non-technical language for an average person.