Bìznes Inform (Jan 2020)
Structural Transformations of the European Natural Gas Market in the Context of Energy Security
Abstract
The economic aspects of the development of natural gas trade are considered and the strategic directions of the formation of the single energy market model in the EU are generalized. The need to create a common energy security system for the EU countries and ways to resolve the problematic issues of diversification of natural gas supplies are substantiated. Prospects for the implementation of the national legislative acts into European legislation in the course of implementation of the EU’s energy security policy are considered. The main directions for achieving this are international agreements and the use of market practices in conjunction with regulatory methodology. Particular attention is paid to the formation of specialized institutions in the energy sphere. The theoretical and practical issues of structural transformation of the European natural gas market and related aspects of energy security are considered. Mechanisms for gas pricing for different participants of the gas market have been substantiated. The need to create an inter-regional gas hub in Ukraine, which will ensure the development of modern instruments of interregional trade in natural gas and allow the development of the system of underground gas storage facilities in Ukraine, is underlined. The latter is important for the concentration of significant volumes of commercial natural gas on Ukrainian territory, which is the key to a long-term energy security. The creation of conditions in the territory of Ukraine for the formation of a liquid, competitive and liberalized natural gas market will strengthen the mechanisms for protecting the national gas infrastructure. Changes in technology, market conjuncture and principles of collective regulation suggest evolving a dynamic system of use of different pricing mechanisms in regions and at the national gas markets.
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