For a long time natural gas has exclusively been a grid-bound energy carrier. In consequence, markets for natural were not globalized, but there were several submarkets (see Tutorial 1) which supplied themselves. Furthermore, the price level in the various markets varied as no arbitrage between the markets was possible.
After giving you an overview of where natural gas is produced and the regions, which are most important for the European natural gas market, the following will provide you an overview of the gas consumption and on which factors it depends on.
Natural Gas is currently the third most important primary energy carrier in the world (after oil and coal). The main advantages of natural gas in comparison to coal or oil are the high efficiency levels that can be achieved when generating electricity from natural gas. As with oil, the global reserves of natural gas are concentrated in a few countries around the world.
The last pipe has been laid at the 482 km long Polarled Pipeline, the first Norwegian pipeline stretching north of the Arctic Circle. The final pipe was laid at the Aasta Hansteen field at a depth of 1,260 metres in the Norwegian Sea.