A Complementarity Model for the European Natural Gas Market

Reports and presentations on the European Gas Market
European Gas Hub Analysis
Published 05/17/2007 by Ruud Egginga, Steven A. Gabrielb, Franziska Holzc, Jifang Zhuangd

In this paper, ther authors present a detailed and comprehensive complementarity model for computing market equilibrium values in the European natural gas system. Market players include producers and their marketing arms which we call “transmitters”, pipeline and storage operators, marketers, LNG liquefiers, regasifiers, tankers, and three end-use consumption sectors. The economic behavior of producers, transmitters, pipeline and storage operators, liquefiers and regasifiers is modeled via optimization problems whose Karush-Kuhn-Tucker (KKT) optimality conditions in combination with market-clearing conditions form the complementarity system. The LNG tankers, marketers and consumption sectors are modeled implicitly via appropriate cost functions, aggregate demand curves, and ex-post calculations, respectively. The model is run on several case studies that highlight its capabilities, including a simulation of a disruption of Russian supplies via Ukraine.

Download the Report "A complementatity Model for the European natual gas market"


Please enter your comment!
Please enter your name here