Meritet, Sophie and Rosellon, Juan and Elizalde, Alberto (2006): LNG in the Northwestern Coast of Mexico: Impact on Prices of Natural Gas in Both Sides of the US-Mexico Border. Published in: Frontera Norte , Vol. 18, No. 36 : pp. 7-27.
Download (746Kb) | Preview
This paper studies the possible impacts of LNG projects on natural gas prices in both sides of the US-Mexico border in California. In California, gas prices are high and the demand is expected to grow. Several projects of LNG facilities have been proposed and have to cope with public opinions against them. In Baja California, four LNG projects are under development given the rising demand forecasted for the next years. After a detailed study of the opportunity for LNG projects, we conclude with an analysis of the fundamentals of the current and future price formation in both sides of the US Mexico border.
|Item Type:||MPRA Paper|
|Original Title:||LNG in the Northwestern Coast of Mexico: Impact on Prices of Natural Gas in Both Sides of the US-Mexico Border|
|Keywords:||Liquefied Natural Gas (LNG), price formation, LNG projects, Mexico-US border, natural gas market|
|Subjects:||L - Industrial Organization > L9 - Industry Studies: Transportation and Utilities > L95 - Gas Utilities; Pipelines; Water Utilities
O - Economic Development, Technological Change, and Growth > O5 - Economywide Country Studies > O54 - Latin America; Caribbean
Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q4 - Energy > Q40 - General
|Depositing User:||Juan Rosellon|
|Date Deposited:||14. Apr 2010 01:00|
|Last Modified:||13. Feb 2013 21:49|
Bazán G., A. Elizalde, and J. Puente (2004), “Real Options Valuation Modeling: A Vivid Application in Liquefied Natural Gas Facilities and Electric Power Generation in the Northwestern Coast of Mexico”, Proceedings of the 19th World Energy Congress & Exhibition, Sydney, Australia, September.
Brito D. L. and J. Rosellón (2002), "Pricing Natural Gas in Mexico; An Application of the Little Mirrlees Rule", The Energy Journal, Vol. 24, No. 3, Mexico
Brito D. L. and J. Rosellón (2005a), “Liquid Natural Gas and a New Policy for Pricing Natural Gas in Mexico”, Working Paper E338, CIDE, Mexico.
Brito D. L. and J. Rosellón (2005b), “Price Regulation in a Vertically Integrated Natural Gas Industry: The Case of Mexico”, The Review of Network Economics, vol. 4, issue 1, Mexico, March.
California Energy Commission (2005), "California's Major Sources of Energy", California, U.S.A.
Comisión Reguladora de Energía (2005), www.cre.gob.mx , June, México. Energy Information Administration (EIA) (2003), “The Global Liquefied Natural Gas Markets: Status and Outlook”, U.S. Department of Energy DOE, Washington, DC., U.S.A. Energy Information Administration (EIA) (2004), “Annual Energy Outlook 2004”, Energy Information Administration, U.S. Department of Energy DOE, Washington, DC, U.S.A. Energy Information Administration (EIA) (2005), "Natural Gas Annual 2005", U.S. Department of Energy DOE, Washington, DC, U.S.A.
Federal Energy Regulatory Commission (FERC) (2005), "Existing and Proposed North American LNG Terminals", Office of Energy Projects, Washington, DC, U.S.A.
Ferguson R. (2003), “Natural Gas: The Next Energy Crisis”, Center for Energy Efficiency and Renewable Technologies, Sacramento, California, U.S.A., September.
Hartley P. and K. Medlock III (2005), “Russian Natural Gas Supply: Some Implications for Japan”, The James A. Baker III Institute for Public Policy, Rice University, Houston Texas, U.S.A.
Institute for Energy Law and Enterprise (IELE) (2004), “The Role of LNG in North American Natural Gas Supply and Demand”, U.S.A., September.
Jensen T. (2004), “US reliance on international liquefied natural gas supply”, policy paper prepared for the National Commission on Energy Policy, U.S.A., February.
Lajous, A. (2005), “El Mercado de Gas Natural y su Regulación,” paper presented at the seminar; “Las Alternativas Energéticas México-Estados Unidos para el Siglo XXI, UNAM, Mexico City.
Meritet S. and A. Elizalde. (2004), “Developing LNG in North America: Impact on Prices of Natural Gas”, Proceedings of the 25th Annual North American Conference of the USAEE/IAEE, Washington, DC, U.S.A., July 2004.
North American Energy Working Group (NAEW) (2005), “North American Natural Gas Vision”, Experts Group on Natural Gas Trade and Interconnections, U.S.A., January. Pemex (2004), “Las Reservas de Hidrocarburos de México, 2004”, Pemex Exploration and Production, Mexico.
Secretaría de Energía (SENER) (2004), “Prospectiva del Mercado de Gas Natural 2004-2013,” Mexico.
Wolak, F. (2004), “Liquefied Natural Gas (LNG) Is Essential to California’s Energy Future”, Stanford Institute for Economic Policy Research Policy Brief, U.S.A., December.