What are the Implication of Transition from Take or Pay to Liberalisation: the Case of Infant Gas Markets
Article from: OGEL 2 (2005), in National and International Issues in Natural Gas Development
Summary
The transit from Take or Pay Contracts (TOP) to competition and liberalisation of downstream gas markets has been successful in many countries. However, the issue is whether this paradigm shift should be adopted by infant markets or capacity short markets as a matter of practice. This paper used country experiences to analyse the benefits and cost of adopting or abolishing TOP. The revolution of gas market to accommodate short term market, spot trading and futures no doubt has multiplier effect on the economy of States with competitive markets. However the limitations of gas ...