Linking Natural Gas Markets: Is LNG Doing Its Job?

The increase in liquefied natural gas trade has accelerated the integration of previously segmented markets in North America, Europe, and Asia. This paper provides evidence on the integration of the transatlantic natural gas market. We test the theoretical proposition that in integrating markets commodity prices should move closer than before. Using 2,059 pairs of daily spot prices for natural gas in North America and Europe we investigate price dynamics covering the period from 1999 until 2008. We apply the Kalman Filter technique to gain detailed information on trends inherent over time. Results suggest an increasing convergence of spot prices on either side of the Atlantic Basin.Market integration, spot markets, LNG, natural gas

Long-Term Contracts and Asset Specificity Revisited –An Empirical Analysis of Producer-Importer Relations in the Natural Gas Industry

In this paper, we analyze structural changes in long-term contracts in the international trade of natural gas. Using a unique data set of 262 long-term contracts between natural gas producers and importers, we estimate the impact of different institutional, structural and technical variables on the duration of contracts. We find that contract duration decreases as the market structure of the industry develops to more competitive regimes. Our main finding is that contracts that are linked to an asset specific investment are on average four years longer than those who are not

Lipschitz geometry of complex surfaces: analytic invariants and equisingularity

We prove that the outer Lipschitz geometry of a germ $(X,0)$ of a normal complex surface singularity determines a large amount of its analytic structure. In particular, it follows that any analytic family of normal surface singularities with constant Lipschitz geometry is Zariski equisingular. We also prove a strong converse for families of normal complex hypersurface singularities in $\mathbb C^3$: Zariski equisingularity implies Lipschitz triviality. So for such a family Lipschitz triviality, constant Lipschitz geometry and Zariski equisingularity are equivalent to each other.Comment: Added a new section 10 to correct a minor gap and simplify some argument

Lipschitz geometry does not determine embedded topological type

We investigate the relationships between the Lipschitz outer geometry and the embedded topological type of a hypersurface germ in $(\mathbb C^n,0)$. It is well known that the Lipschitz outer geometry of a complex plane curve germ determines and is determined by its embedded topological type. We prove that this does not remain true in higher dimensions. Namely, we give two normal hypersurface germs $(X_1,0)$ and $(X_2,0)$ in $(\mathbb C^3,0)$ having the same outer Lipschitz geometry and different embedded topological types. Our pair consist of two superisolated singularities whose tangent cones form an Alexander-Zariski pair having only cusp-singularities. Our result is based on a description of the Lipschitz outer geometry of a superisolated singularity. We also prove that the Lipschitz inner geometry of a superisolated singularity is completely determined by its (non embedded) topological type, or equivalently by the combinatorial type of its tangent cone.Comment: A missing argument was added in the proof of Proposition 2.3 (final 4 paragraphs are new

Regional Patterns of Intangible Capital, Agglomeration Effects and Localised Spillovers in Germany

We use a large micro-dataset to assess the importance of intangible capital - organisation, R&D and ICT capital - for the economic performance of establishments and regions in Germany. In 2003 self-produced intangible capital accounted for more than one fifth of the total capital stock of estab-lishments. More than half of the intangible capital is R&D capital. This high proportion is mainly due to a relatively strong and research-intensive manufacturing sector in Germany. At the regional level, we find descriptive evidence for a positive relationship between intangible capital and the economic performance of regions. This is true both for the level of economic activities and for growth. The results of cross-sectional regressions for the years from 1999 to 2003 indicate that dou-bling the intangible capital intensity of establishments increases the average wage levels by one percent. Regarding the regional economic environment of establishments, we find that the substan-tial net advantages of agglomeration have more to do with broad knowledge and diversity than with regional clustering and specialisation. Separate regressions for the wage levels of non-intangible workers show very similar results. These workers can share the rents of the activities of intangible workers. Thus, intangible capital generates positive externalities not only at the regional level, but also at the level of establishments.Firm productivity, intangible capital, agglomeration, local spillovers

Facilitating Low-Carbon Investments: Lessons from Natural Gas

Decarbonisation of energy and transport infrastructure requires significant private sector investments. The natural gas industry has demonstrated such large scale private sector infrastructure investment over the last decades, typically using long-term contractual arrangements. Are therefore institutional frameworks necessary that facilitate long-term contracting or provide regulation reassuring about future resource streams associated with low-carbon infrastructure - or do factors idiosyncratic to natural gas explain the prevalence of long-term contracts in natural gas infrastructure investment? We identify four reasons for the use of long-term contracting arrangements. The transformation of the natural gas industry and regulatory structure has gradually reduced the rational for three of these reasons, suggesting that remaining rational, securing of revenue streams to finance investments has become the main motivation for the use of long-term contracts. This rational is not idiosyncratic to the natural gas industry, and thus suggests that long-term contracting can also play a significant role in facilitating low-carbon infrastructure investment. We furthermore discuss the role of institutional frameworks necessary for long-term contracting, and identify the significant role governments have been playing in sharing the counterparty risk inherent in long-term contracts.Investment, low-carbon economy, natural gas

Long-Term Contracts and Asset Specificity Revisited: An Empirical Analysis of Producer-Importer Relations in the Natural Gas Industry

In this paper, we analyze structural changes in long-term contracts in the international trade of natural gas. Using a unique data set of 262 long-term contracts between natural gas producers and importers, we estimate the impact of different institutional, structural and technical variables on the duration of contracts. We find that contract duration decreases as the market structure of the industry develops to more competitive regimes. Our main finding is that contracts that are linked to an asset specific investment are on average four years longer than those who are not.asset specificity, econometric analysis, long-term contracts, natural gas